TriStar Capital and Principal Real Estate Investors just sold off a piece of their retail holdings in the fast-moving Miami Design District market for $18.7 million.
The deal includes a 1950s-era building at 3946 North Miami Avenue. It measures 12,292 square feet, of which 9,907 square feet is available for leasing.
Less than two years ago, TriStar and Principal paid $10.625 million for the property. That price point breaks down to about $864 per square foot. Now, the joint venture has sold the building for a whopping $1,521 per square foot — a price point that begins to rival some luxury residential real estate.
The buyer is a retail investment firm called L3 Capital that’s headquartered in Chicago, according to a press release. The company focuses on acquiring properties in the $10 million-plus bracket. Besides Miami, L3 is active in markets like Boston, New York, Chicago, Los Angeles and San Francisco.
RKF and HFF brokered the deal. Benjamin Mandell, Drew Schaul and John Ellis of RKF represented L3 Capital, while Manny de Zarraga of HFF represented the sellers.
“L3 Capital has been steadily active in prime urban markets and had been patiently waiting for the right asset to invest in to increase their presence in arguably the hottest luxury retail submarket in America,” Mandell said in a news release.
In recent months, TriStar flipped another retail property neighboring Miami’s Midtown market for a cool $13 million. The firm is among several buying up massive pieces of Wynwood, Midtown and the Design District, all of which are being identified as Miami’s hottest markets. — Sean Stewart-Muniz