Avra Jain, 13th Floor sell Design District property

Site across from Palm Court Garage sold for nearly 3.5x in less than three years

TRD MIAMI /
Jun.June 02, 2015 04:30 PM

A Design District property across the street from the Palm Court Garage has traded hands for $6.9 million — up nearly 3.5 times in less than three years, The Real Deal has learned.

38th Street DD LLC, a Delaware partnership that includes developer Avra Jain and Miami-based investment firm 13th Floor Investments, sold the 3,224-square-foot building at 170 Northeast 38th Street, Lyle Chariff, president of Chariff Realty Group, told TRD.

The commercial building, which was built in 1946, sits on a 10,250-square-foot lot. The partnership had paid $2 million, or $620 per square foot for the site in October 2012, according to Miami-Dade property records.

The buyer in the deal, which closed on Monday, is Design Stage LLC, a Florida private equity firm, whose principal is Arnaud Sitbon, Chariff said. At $6.9 million, the price equates to $2,140 per square foot.

Chariff and partner Mauricio Zapata represented both sides of the deal.

“It was a very quick, quietly marketed transaction between an intimate group of buyers and sellers,” Chariff said.

The new owners plan to tear down the building and redevelop it, he said.

Chariff’s firm has brokered several sales and leases for the site since 2003, Zapata told TRD. The last lease was to the Stage, a nightclub that has since vacated the property.

“The interesting thing is that when we last sold it, I had it listed it and I was talking to [13th Floor Managing Principal] Arnaud [Karsenti] and Avra, and they both were very interested, and the problem was who was going to get it. Both were going to pay the same thing, and the seller was saying ‘You make the choice; it’s the same deal,'” Chariff said.

“At the final hour, I had them both come in, and I said ‘Listen guys, this is what we are up against. If you are going to buy it you have you to do it together,'” Chariff said. “And they made a partnership right there in my office, and they bought it.”

The property is just south of the entrance to the Palm Court Garage, on Northeast 38th Street between Northeast First Court and Northeast Second Avenue. The pedestrian exit is a spiral staircase from the underground garage out into a reproduction of R. Buckminster Fuller’s Fly’s Eye Dome, which is centered in Palm Court’s plaza.

Amid the changes in the Design District, prices for commercial property are rising exponentially. In March, New York-based Thor Equities paid $16 million for 56 Northeast 40th Street and 55 Northeast 39th Street. Also in March, Brooklyn-based RedSky Capital and London-based JZ Capital Management purchased 35 Northeast 40th Street, the home of Oak Tavern, for $28 million; and 1 Northeast 40th Street for $29.25 million.

Last week, a property at the edge of the Miami Design District — whose tenants include Michael Schwartz’s Cypress Room — traded hands at triple its 2012 price. Investor Harry Benitah bought the 5,186-square-foot building at 3620 Northeast Second Avenue for $5.5 million from a partnership between Chariff, Zapata and Shawn Chemtov.


Related Articles

arrow_forward_ios
Avra Jain and Vagabond Hotel (Credit: Google Maps)

Miami-Dade judge tosses Avra Jain’s $15M lawsuit against former attorneys

Miami-Dade judge tosses Avra Jain’s $15M lawsuit against former attorneys
(Credit: iStock)

Here’s how South Florida’s office market is changing in the coronavirus era

Here’s how South Florida’s office market is changing in the coronavirus era
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
From left: Avra Jain, Scott Sherman, Josh Migdal, Tony Arellano, Devlin Marinoff and Jason Kellogg

“A landlord waiving rent and not getting anything in return is just not a reality:” experts sound off on pandemic’s effect on South Florida’s retail market

“A landlord waiving rent and not getting anything in return is just not a reality:” experts sound off on pandemic’s effect on South Florida’s retail market
Illustration of Developer Bob Zangrillo and a rendering of the project

Bob Zangrillo is out at Avra Jain’s Miami River project

Bob Zangrillo is out at Avra Jain’s Miami River project
Daily Digest Miami

Construction worker killed in Hallandale electrocution, developer under contract for site near Fort Lauderdale Brightline

Construction worker killed in Hallandale electrocution, developer under contract for site near Fort Lauderdale Brightline
Avra Jain and a rendering of 225 NE 34th Street

Avra Jain plans to benefit from Opportunity Zone for Midtown office building

Avra Jain plans to benefit from Opportunity Zone for Midtown office building
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
arrow_forward_ios

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

Loading...