One month after the City of Miami Beach passed on the opportunity to acquire the ground lease for the Pelican Garage, a subsidiary of Jones Lang LaSalle Income Property Trust stepped in and purchased the lease for more than $22 million, The Real Deal has learned.
Jones Lang subsidiary LIPT Collins Avenue bought the lease for the 1027 and 1041 Collins Avenue parking garage on Tuesday, according to Miami-Dade County records. Seller Pelican Investment Holdings, a company tied to Miami-based Fort Capital Management, filed a lease assignment with the county that was recorded Wednesday. The lease with the city, which owns the land, began in 1999.
The city had a right of first refusal to buy the lease, but commissioners voted last month to decline it. Miami Beach would have needed nearly 15 years to recoup its investment if it moved forward with the purchase, according to last month’s resolution. It received a $250,000 settlement from Pelican Investment as part of the transaction. — Eric Kalis