MIAMI—Another South Beach building has changed hands. An 18,750-square-foot trophy retail building fetched $12.288 million. The price equals $656 per square foot.
Drew A. Kristol and Kirk Olson, both vice presidents investments in Marcus & Millichap‘s Miami office, represented the seller, a private Miami Beach owner-developer. The buyer, also represented by Kristol and Olson, is a New York-based private investment group in the early stages of building a portfolio of high-end street retail locations in Miami Beach.
“The new owner was focused on acquiring a corner retail asset with major visibility, pedestrian traffic and upside potential,” says Kristol. “It is very rare to find a fully occupied cash-flowing retail property in South Beach with both long-term leases and aggressive annual rent bumps.”
Located at 1441 Washington Ave., the retail property sits on the southeast corner of Washington Avenue and Espanola Way. That’s two blocks south of the Lincoln Road Mall and two blocks west of Ocean Drive and popular beaches. Says Olson, “The building is anchored by publicly traded American Apparel, and the well-established Score nightclub, which recently signed a new 10-year lease.
As for Lincoln Road, it has seen plenty of activity in recent months. In January, Thor Equities snapped up three new Lincoln Road properties. And Tristar exited Lincoln Road, giving up its retail properties to another strategic buyer. Terranova and Arcadia become the largest pure retail owners on Lincoln Road in December when they snapped up a $139 million portfolio, the largest of 2012.