The Real Deal Miami

Design District property sells at premium: $24M

Michael Comras-led group sold to Redsky Capital and JZ Capital Management

July 02, 2015 01:15PM
By Ina Cordle

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21 Northeast 39th Street in Miami

21 Northeast 39th Street in Miami

A property at 21 Northeast 39th Street has sold for $24 million — up nearly sixfold in four years — as demand heats up in Miami’s Design District, The Real Deal has learned.

A group of investors led by commercial real estate broker and developer Michael Comras sold the property to RS JZ 21 NE 39th, LLC, an affiliate of Brooklyn-based RedSky Capital and London-based JZ Capital Management, in an off-market deal.

The 9,400-square-foot site includes an 8,310-square-foot, one-story building, built in 1972, according to Miami-Dade property records. The Comras-led investment group paid $4.3 million for the property in July 2011, records show.

“We’re excited about the sale of the property and the continuing dynamic growth in the Design District,” Comras told TRD.

Post-closing, the Comras Company will be working with the new owners on the leasing and merchandising of the property, he said.

A portion of the property is currently occupied by Felio Siby Miami. It was formerly occupied by an Abitare/Minotti showroom and an Anima Domus store.

Michael Comras

Michael Comras

“The west side of the Design District is evolving and will be something that will be complementary to what Dacra and L Group are doing in the east side,” Comras said. “As ownership continues to consolidate on Northeast 39th and 40th streets, between Northeast First Avenue and North Miami Avenue, it will allow the area to come together in a more cohesive way.”

Redsky Capital has been on a buying spree in the Design District in recent months. Redsky and JZ paid $28 million for the site of the former Oak Tavern, at 35 Northeast 40th Street, in March. The same month, the firms paid $29.25 million for the property at 1 Northeast 40th Street.

Last week, RedSky purchased the 13,245-square-foot property at 2501 Northwest Fifth Avenue in Wynwood for $6 million.

  • colin

    I just don’t see it. These seems to be betting on the future.

  • Beastikle

    Very smart move, with rates between $200-$300/sq ft on ground floor leases, this group will make a solid return on investment post redevelopment. The design district is small and very soon only a handful of firms will control the entire district. Institutional investors are taking over and with low cost of capital will be able to keep a stronghold for years to come.

  • Yes agreed that west side of the Design District is evolving and will be something that will be complementary

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