Thor Equities completes priciest Design District buy

Miami /
May.May 12, 2014 02:00 PM

Thor Equities just made its biggest investment in Miami’s Design District to date, The Real Deal has learned.

The New York investor paid $45.4 million for Sam Herzberg’s portfolio in the district. Thor’s acquisition of the five properties closed on Friday. Miami-Dade County has not recorded the all-cash transaction.

Thor adds more than 32,000 square feet to its growing assemblage in the district. The company has spent more than $76 million in four recent acquisitions, including last month’s $15.8 million purchase of the Baltus building. That building is contiguous to the properties Thor acquired from Herzberg.

Scott Sherman, a Thor executive, declined comment when reached on Monday. The company already added the 2-54 Northeast 40th Street properties to its website, however. In its description of the portfolio, Thor says it plans to redevelop the existing buildings into “the most enviable luxury mixed-use property in the Design District.”

Herzberg, who owns the Sterling Building on Lincoln Road, generated a substantial return on the $19.3 million investment he made in the properties. Companies managed by Herzberg acquired the parcels in several transactions two years ago. Wells Fargo Bank provided Herzberg’s companies with a $13.3 million loan for the purchases.

“A lot of this has to do with my personal situation,” Herzberg told TRD on Monday. “I felt like it was a development piece. I’m not a developer. I buy existing properties and try to manage them better.”

The transaction represents “a good opportunity for both parties,” Herzberg said. “This is the type of property, urban high-end retail, that Thor likes to buy.”

Chariff Realty Group’s Lyle Chariff and Mauricio Zapata arranged the transaction.

“Thor remains very committed to the Miami Design District and has been very supportive of Craig Robins’ neighborhood improvement plan,” Chariff told TRD. “We began this transaction several months ago and I’m happy to see that we had a smooth successful closing. I see property prices within the district continuing to drastically rise, just based on current purchase contracts that we have knowledge of.”

Robins-led Dacra and private equity partner L Real Estate Advisors are in the midst of a $1 billion mixed-use project that is luring luxury retail tenants to the district, which is experiencing a flurry of property sales activity on blocks surrounding the massive development.


Related Articles

arrow_forward_ios
Stefano Ricci, Joe Sitt and 118-120 Northeast 39th Street (Getty, Thor, Google Maps)

Thor Equities sues to evict Stefano Ricci from Miami Design District

Thor Equities sues to evict Stefano Ricci from Miami Design District
Steve Madden and 663 Lincoln Road (Getty, Google Maps)

Steve Madden vacates Lincoln Road lease

Steve Madden vacates Lincoln Road lease
Remy Jacobson, Jean-Marc Jacobson, 4141 North Miami Avenue (Credit: Google Maps and REALTOKEN)

Remy Jacobson allegedly in default on Design District loan: lawsuit

Remy Jacobson allegedly in default on Design District loan: lawsuit
Inside South Florida’s mall, retail and restaurant reopenings

Inside South Florida’s mall, retail and restaurant reopenings

Inside South Florida’s mall, retail and restaurant reopenings
Vlad Doronin, Len Blavatnik, and 3425 Collins Avenue (Credit: Google Maps, Gesi Schilling, and Mark Neyman / GPO)

Developer of Aman-branded towers in Miami Beach scores $35M loan

Developer of Aman-branded towers in Miami Beach scores $35M loan
Clockwise from top left: 3995 North Miami Ave., 5 Northeast 39th St., 1 Northeast 40th St. through 35 Northeast 40th St. (Credit: Google Maps, iStock)

Lender lists troubled RedSky’s Miami Design District portfolio

Lender lists troubled RedSky’s Miami Design District portfolio
Renderings of Miami Plaza and Carlos and Martin Melo

Melo Group launches preleasing for latest A&E rental tower

Melo Group launches preleasing for latest A&E rental tower
Alain and Gerard Wertheimer with the Chanel space on 41st Street (Credit: Chanel, Julien Hekimian/WireImage/Getty Images, and Google Maps)

Chanel to open store in Miami Design District

Chanel to open store in Miami Design District
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...