The Real Deal Miami

Compass space on Lincoln Road returns to market: $22.5M

Triple-net lease space is on the market for $1,092 per square foot

March 23, 2016 03:00PM
By Katherine Kallergis

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The Compass office at 605 Lincoln Road

The Compass office at 605 Lincoln Road

Compass’ new Miami Beach digs at 605 Lincoln Road have returned to the market, this time with a listing price and a new lead brokerage firm.

Ben Silver, Richard Niewiadomski, Doug Mandel

Ben Silver, Richard Niewiadomski, Doug Mandel

Marcus & Millichap’s Richard A. Niewiadomski, Douglas K. Mandel and Benjamin H. Silver are the exclusive listing agents for the 20,600-square-foot office space in the former Sony Music building. Gordon Messinger, director of Cushman & Wakefield, arranged the Compass lease and is now co-listing the property with Marcus & Millichap, which is leading the sales effort.

The then-vacant space was listed for sale last fall unpriced, taken off the market as the Compass space was being negotiated, then put back on the market in February unpriced. Now, it’s on the market with a triple-net tenant for a $22.5 million asking price, which breaks down to about $1,092 per square foot. The two-story penthouse is located on the sixth and seventh floors of the building.

“This is the first time the property has a brand-new, 10-year lease in place with nationally recognized tenant,” Niewiadomski told The Real Deal. He expects the commercial unit to trade at an aggressive cap rate on current income, which he said will grow at 3 percent on an annual basis. Having a tenant like Compass opens up the buyer pool “tremendously,” Niewiadomski said.

Beth Butler, president of Compass Miami, oversees the Miami office of about 30 people, according to its website. Compass moved into the building, an eight-story, renovated Art Deco office condominium, in early November. The office condominium was built in 1932, according to Miami-Dade property records. Starbucks Lush, Oakley and Journey occupy the ground floor.

Niewiadomski said he and his colleagues are looking for a buyer who recognizes “the value of the property’s irreplaceable location along Lincoln Road, which currently has some of the highest commercial rents in the nation.”

In February, TRD took a look at what’s for sale on Lincoln Road following the record $370 million sale of an entire block in September.