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CORAL GABLES, FL-A local private investor group identified as Miracle Mile South LLC has paid just over $4 million, or $405 per sf, for 262 Miracle Mile Retail, a 10,000-sf shopping center at that address. The seller is a New Jersey-based group of owners with interests in South Florida, according to Marshall Smith, EVP of the Miami office of Thomas D. Wood & Co., which arranged financing for the acquisition.

The center was built in the 1960s. It is 100% leased to five tenants, all local-area retailers. This sale is among several recent South Florida retail transactions that have exceeded $400 per sf. St. Andrews Plaza in Boca Raton, another small, fully leased retail center, just traded for nearly $430 per sf.

These prices contrast with a median price of $115 per sf for retail property sales in South Florida at year-end 2004, according to mid-year 2005 report from the Miami office of Marcus & Millichap. The report says retail asset pricing “where available land is tight,” rose approximately 10% this year and should surge higher in the months ahead.”

The buyer of the Miracle Mile center obtained a $2.5-million, non-recourse loan for a 10-year term, with interest-only for the first two years, Smith tells GlobeSt.com. This funding was secured at a fixed-rate of 5.29%. The lender is Minneapolis-based Advantus Capital Management. “We are their exclusive correspondents for Florida,” Smith says, “and Advantus also allowed for another $500,000 second mortgage on the property, taking the full funding package to 75% of the purchase price.”

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