Why One JV Paid $88M for CocoWalk

MIAMI—With local market partners Grass River Property and Comras Company, Federal Realty Investment Trust just acquired an 80% stake in CocoWalk. The 198,000-square-foot lifestyle center in Miami's Coconut Grove neighborhood is valued at  $87.5 million.  

“CocoWalk is the focal point of Coconut Grove's historic village center, a short walk from Biscayne Bay and some of Miami's most prominent residential neighborhoods,” says Jim Taylor, executive vice president, CFO and treasurer of Federal. “Surrounded by new residential towers, hotels, offices, schools, parks and marinas, CocoWalk's tenants serve more than 150,000 Coconut Grove residents and millions of visitors each year.”

CocoWalk sits at the intersection of Main Highway, McFarlane Road and Grand Avenue. That puts it within minutes from Miami's Brickell, Downtown, Coral Gables, and Key Biscayne neighborhoods.

“Local, regional and national retailers and restaurateurs are increasingly seeking walkable environments where they can connect year-round and throughout the day with their customers,” says Michael Comras, CEO of Comras. “Their enthusiasm for CocoWalk's location will drive a powerful merchandising mix that captures the Grove's vibe.”

Coconut Grove posts some of the strongest year-round income demographics in South Florida, a fast-growing daytime population with over one million square feet of office space within walking distance, five existing and three planned hotels, and one of Miami's best-performing residential markets. Partnering with neighborhood experts, Taylor sees “significant opportunity: to transform and remerchandise a property at the center of what he calls “Miami's most authentic district.”

Constructed in 1990, the property sits on about three acres of land two miles from the 16,500 students of the University of Miami. CocoWalk's overall trade area is affluent and dense with over 153,000 people and average household incomes of $110,000.

“Locals are embracing Coconut Grove's resurgence as a destination that's home to quality retail, entertainment and dining reflecting their needs and lifestyle,” says Grass River principal George Spillis. “At the same time, visitors to Miami are looking to experience neighborhoods with true local character. CocoWalk has long been the commercial anchor of Coconut Grove. As we move forward, we plan to better integrate CocoWalk into the historic and evolving fabric of the surrounding neighborhood and the larger Grove community.”