The Real Deal Miami

Clarion pays $109M for commercial building lease off Lincoln Road

Seller is a public/private partnership between the city of Miami Beach and Real Estate Capital Partners

April 18, 2016 06:00AM
By Katherine Kallergis

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The Lincoln at 1691 Michigan Avenue (Credit: Dan Forer via Arquitectonica)

The Lincoln at 1691 Michigan Avenue (Credit: Dan Forer via Arquitectonica)

Updated, April 18, 1:30 p.m.: Clarion Partners paid $109.25 million in cash for the ground lease of the Lincoln, a mixed-use office and retail building off of Lincoln Road in Miami Beach, records show. 

The owners, a public/private partnership between the city of Miami Beach and New York-based Real Estate Capital Partners, listed the property, sans asking price, in September.

The six-story building is the future home of Pottery Barn and Williams-Sonoma, which were both previously on Lincoln Road. It has 118,000 square feet of office space, 43,000 square feet of ground-floor retail space, and is connected to a parking garage with 709 spaces. The Lincoln was built on a 1.76-acre site in 2003 and is 94 percent leased to eight retail tenants and 31 office tenants.

County records filed on Friday show CLPF – Lincoln LLC, a Clarion affiliate based at the company’s Washington D.C. office, purchased the lease. It last sold for $74 million in 2006, and the lease with the city began in 1999 with a maximum term of 90 years. Clarion purchased the leasehold interest on behalf of a commingled fund, according to CBRE.

Stephen Rutchik and Jonathan Kingsley of Colliers International South Florida along with Christian Lee, Jose Lobon, Andrew Chilgren, Charles Foschini and Christopher Apone of CBRE were the listing agents.

When the Lincoln was listed for sale, tenants included Blue Chip Wealth Management, a financial planning company; Creative Artists Agency, an entertainment and sports agency; Deco Capital, a real estate investment company; and Stewart Title Company, a service provider for the real estate industry.

Deli Hank & Harry’s signed a lease for a 1,200-square-foot space in the building as well.

The property is near Lincoln Road, where an entire block sold in September for $370 million. Spanish billionaire Amancio Ortega paid about $4,933 per square foot for the properties that run from 1001 Lincoln Road through 1035 Lincoln Road. Those buildings are home to newly built stores for Gap, Intermix, Athleta, Apple and the future location for Nike – which will be built at the former site of Pottery Barn and Williams-Sonoma. Rents on Lincoln Road reportedly near $400 per square foot.

Just last week, Clarion paid $18 million for a newly developed industrial warehouse in Medley. In December, the real estate investment company also paid $117 million for the Marketplace at the Outlets in Palm Beach, and is a majority owner of the adjacent outlet shops.