Miami Design District property triples in three years

Michael Schwartz's Cypress Room, Bloom Miami and Shades and Sound are tenants

TRD MIAMI /
May.May 27, 2015 02:15 PM

A property at the edge of the Miami Design District — whose tenants include Michael Schwartz’s Cypress Room — has traded hands at triple its 2012 price, The Real Deal has learned.

3620 Design District LLC — a partnership between Lyle Chariff, Mauricio Zapata and Shawn Chemtov — sold the 5,186-square-foot building, at 3620 Northeast Second Avenue for $5.5 million, or $1,061 per square foot, Chariff told TRD.

The buyer is Harry Benitah, a local investor and developer whose properties in the area include Buena Vista Flats and the Teresita Market, Chariff said.

Chariff, president of Chariff Realty Group, said he hand-picked Benitah as the buyer. Chariff and his partners control four buildings at the gateway to the Design District, at the four corners of the I-95 overpass at Northeast 37th Street, including the new Brown Jordan building which is almost fully built.

“Two weeks ago I said I would be interested in bringing in more outside people to work with us and have neighbors, and [thought] who would be the best person,” Chariff told TRD. “So I picked up the phone and called my friend Harry. He is focused on the district and he is committed and does great things, and I would love him to be a neighbor.”

Chariff said the deal, which closed on Tuesday, had a speedy 10-day inspection and 10-day closing. “I didn’t even go to market with the building,” he said. “I just made one call.”

The sellers had originally purchased the building in April 2012 from Kay Statz of Camp Development, for $1.782 million. When Chariff first got involved in real estate, he said Camp Development was the first company he worked for, and Statz was his first boss.

When the partners bought the building, it was empty, Chariff said. The building, built in 1921, sits on a 6,195-square-foot lot, according to Miami-Dade property records.

“We repositioned the building and added value by signing three great current tenants,” Chariff said. In addition to the Cypress Room, Bloom Miami and Shades and Sound, both longtime Design District retailers, also lease space in the property.

Properties in the Design District has been quickly rising in value, as Dacra’s Craig Robins transforms the area into a luxury shopping destination. In late March, Thor Equities added to its portfolio, paying $16 million for 56 Northeast 40th Street and 55 Northeast 39th Street. Other buyers in the district include Brooklyn-based RedSky Capital and London-based JZ Capital Management, which in March purchased 35 Northeast 40th Street, the home of Oak Tavern, for $28 million, and 1 Northeast 40th Street, for $29.25 million.

Chariff said Benitah has no plans to redevelop the property at 3620 Northeast Second Avenue. He said rents in the building are in the $60s per square foot, and market rents on the four buildings that he and his partners control is more than $100 per square foot. “So there is so much upside value,” he said.

“We repositioned the building with great tenants, with two-and-a-half years of great rental history,” he said, “and created a gem.”


Related Articles

arrow_forward_ios
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
Quadro at Design District and Rainmundo Onetto

Alta Developers launches sales of Quadro at Design District

Alta Developers launches sales of Quadro at Design District
Joia Beach

The Weekly Dish: Joia Beach to open at Jungle Island & more

The Weekly Dish: Joia Beach to open at Jungle Island & more
Design District City View Garage, and Frankie Walker Jr. (Credit: Getty Images)

Lebron James’ Unknwn business partner allegedly skipped out on construction bill

Lebron James’ Unknwn business partner allegedly skipped out on construction bill
Daily Digest Miami

Project with downtown Miami’s first brewery moves forward, startup aims to institutionalize investing in Miami condos: Daily digest

Project with downtown Miami’s first brewery moves forward, startup aims to institutionalize investing in Miami condos: Daily digest
112 NE 41st Street, Ray Cleeman of Pensam Funding

Developer of new Design District building snags a $30M loan

Developer of new Design District building snags a $30M loan
David and Leila Centner and the Centner Academy (Credit: Getty Images, Google Maps)

Owners of new Miami Design District school hired mayor’s law firm to represent them in zoning appeal

Owners of new Miami Design District school hired mayor’s law firm to represent them in zoning appeal
Miami Design District (Credit: Miami Design District)

The Weekly Dish: Robuchon restaurants set Miami opening dates, new restaurants planned for MiMo & more

The Weekly Dish: Robuchon restaurants set Miami opening dates, new restaurants planned for MiMo & more
arrow_forward_ios

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

Loading...