The Real Deal Miami

Redsky, JZ Capital pay $24M for Design District site

It last sold for $107,000 in 1992

September 30, 2015 01:30PM

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45 Northeast 39th Street in Miami

45 Northeast 39th Street in Miami

Redsky Capital and JZ Capital Partners have closed on a retail building in Miami’s Design District, making them the second largest property owners in the area.

Redsky and JZ paid $23.95 million for the property at 45 Northeast 39th Street, RKF announced on Wednesday.

The 8,553-square-foot building, across the street from the Buena Vista Post Office, was developed in 1972 and sits on a 9,400-square-foot lot, according to Miami-Dade County property records.

The seller, Tishman Corp., paid $107,000 for the property in 1992. Tishman was represented in-house, while Benjamin Mandell, Drew Schaul and John Ellis of RKF represented the buyers.

Redsky plans to “re-imagine the property for future use, incorporating similar architecture and design elements as other new developments located in the District,” according to a press release. Nearby tenants include Kartell, Armani/Casa, Tui, Stefano Ricci and Fabrizio Cocchi.

“Domestic and overseas capital has been pouring into Miami’s commercial real estate market and has been rising dramatically every quarter since 2011, making Miami’s retail sector one of the hottest of any of America’s gateway cities,” Mandell said in the release. “And, with the Design District among the most in-demand retail markets in Miami, we are starting to see retailers make the move to the area to fill the remaining availability.”

In July, Redsky and JZ paid $24 million for the retail property at 21 Northeast 39th Street. A group of investors led by commercial real estate broker and developer Michael Comras sold the building.

Also in July, David Edelstein’s New York-based TriStar Capital paid $65 million for the nearby Atlas Plaza, home to Michael’s Genuine Food & Drink, Rolex, Longchamp, Trend by Sebastien James, and Markowicz Fine Art, among other tenants. – Katherine Kallergis