Amid heightened demand
for properties along Miami Beach’s Lincoln Road, The Real Deal took
a look at what’s on the market. The answer? Very little, officially. But
insiders know differently.
In September,
billionaire Amancio Ortega paid $370 million for the city block
anchored by newly built stores for Gap, Intermix, Athleta, Apple and the
future location for Nike. Per square foot, the sale broke down to $4,933.
A partnership led by Michael Comras and Jonathan Fryd sold the properties.
And earlier this
year, Aldo Group paid $35 million or $6,560 per square foot for
the building at 635 Lincoln Road. Before that, Rockpoint Group paid $30 million
or $1,219 per square foot for 312 Lincoln Road. The seller paid $555,000 for the
building in 1989.
Comras told TRD that many
properties are packaged. “The people who need to know about it know about it –
so it’s not really off-market,” he said. “That happens all the time.”
Potential buyers,
which include foreign and domestic equity investors, are going after every
product regardless of availability, he told TRD. And
improvements for the popular promenade are coming: In October, the Miami Beach
commission approved a Lincoln Road Business Improvement District run by
business and property owners, as well as a master plan for the street, designed by New York-based James
Corner Field Operations. The latter will widen sidewalks, add extensive
landscaping, and turn some side streets and back alleys into pedestrian
walkways that will serve as new retail and restaurant venues.
Comras said Lincoln
Road is segmented to a certain extent, but equally desirable from a buying
perspective. East of Meridian Avenue, for example, tenants like H&M and
Forever 21 and the customers they attract have an impact on who leases there in
the future. “You want similar tenants around them,” Comras said. “So, higher
priced tenants move toward the west side.”
Development has also
spilled over to Lincoln Lane, where Terranova Corp., a large property owner in
Miami Beach, is building two new three-story buildings off of Meridian
Avenue. The new sites, at 723 Lincoln Lane and 801 Lincoln Road, are geared to expand
the Lincoln Road shopping district from the pedestrian promenade to 17th
Street.
In
November, Lincoln Road ranked as the 10th most expensive retail street in the United
States, according to a Cushman & Wakefield research
report. Drew Kristol, vice president of investments and senior director of
Marcus & Millichap’s national retail group, said rents on Lincoln Road
range anywhere from $200 per square foot to $325 per square foot.
About two years ago,
the popular Van Dyke Cafe was replaced by Lululemon, a high-end athletic
apparel store. Other tenants that have moved in this cycle
include H&M, Anthropologie, Intermix, Forever 21, Apple, Gap and Urban
Outfitters. Also in 2014, Graziano Sbroggio’s Graspa Group closed TiramesU
at 721 Lincoln Road after 17 years. Graspa relaunched the concept in the South-of-Fifth
neighborhood late last year.
“A lot of investors are seeing a pushback from tenants,” Kristol
told TRD.
- 605 Lincoln Road – Sony Music Building
- Ines Hegedus-Garcia of RelatedISG International Realty
is listing the rooftop “skydeck,” suite 800 and suite 270. The commercial
units are on the market for $3 million and total more than 8,000 square
feet. The property, owned by Upper Deck LLC, opens up to a
3,700-square-foot terrace.
- Units 303 and 405 are on the market
for $987,000 and $595,000, respectively. A loopnet listing shows
Susan Gale of ONE Sotheby’s International Realty as the listing agent.
Unit 303 is a 2,167-square-foot commercial condo on the third floor. Unit
405 is a 1,000-square-foot office condo on the fourth floor.
- 421 Lincoln Road
- The Comras Company is listing the retail building
currently leased to Surf Style. Based on the sale of 1001-1035 Lincoln
Road, the property, which has 10,042 square feet on the ground floor and
an additional 3,294 square feet on the mezzanine level, could sell for more than $65 million, or as much as $80
million – calculated on the land alone.
- 1250 Lincoln Road
- The 40-unit bulk condo hit the market in November without a listing price.
Lincoln West Gardens is in a residential area of Lincoln Road, one block
west of the retail district that starts at 1111 Lincoln Road. Avison
Young’s Michael Fay and John Crotty are the exclusive listing
agents.
- 607-613 Lincoln Road
- According to CoStar, the two-story, 8,527-square-foot
property offers 50 feet of frontage on Lincoln Road and 100 feet of frontage
on Lincoln Lane. It was built in 1933 and renovated in 1995. The building
does not have an asking price.
TRD Researcher Eda Kouch contributed
reporting.
Original Content The
Real Deal
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