Flagler Street building in downtown Miami sells at premium

Property sold for $9 million or $213 per square foot

TRD MIAMI /
Jun.June 16, 2015 03:15 PM

An office building on Flagler Street in downtown Miami sold for nearly three and a half times its previous sale in 2009, The Real Deal has learned.

On Thursday, the property at 219 East Flagler Street, sold for $9 million or $213 per square foot, Marcus & Millichap commercial broker Alex Zylberglait told TRD. Zylberglait represented the seller.

“Not only does the sale reflect the state of the market, but it reflects the opportunities in downtown Miami,” he said. “The buyer sees the long term potential.”

Downtown Miami Center, a company listing Israeli owners Dvir Dehry and Limor Dehry on its corporate records, sold the six-story, 42,123-square-foot building to East Flagler Building, an Aventura-based LLC. In May, Dvir Dehry was charged with bribing a city fire inspector to remove code violations, according to the U.S. Department of Justice, for another building at 223 East Flagler.

The 7,000-square-foot site last sold for $2.6 million in May 2009 as part of a distressed sale, according to Miami-Dade property records. Information on last week’s buyer was not available in public records, but Zylberglait said the new owner has invested in Miami before.

“The existing economics of this deal are not the most attractive to the [typical] investor,” he said. “The buyer sees the opportunity of appreciation over a number of years.”

Developments such as All Aboard Florida, Miami Worldcenter and recent sales of properties along Flagler Street are spearheading the eventual transformation of downtown Miami, according to Arnstein & Lehr Partner Luis Flores.

Investor Moishe Mana, for example, has acquired more than 530,000 square feet of retail properties, and nearly five acres of land on or near Flagler Street since last year. He has yet to release his plans.

Flores, who most recently represented J. Milton & Associates in closing a $136.5 million construction loan for the Parque Towers project in Sunny Isles, said that the Miami’s Central Business District is in need of more office and retail space, and that the Brickell market is fully developed and oversaturated.

“Everyone is looking at downtown Miami,” he said. “There will be a full renaissance downtown. Maybe not in two years or three years, but in 10 years. The smart players are putting their foot in the door now.”


Related Articles

arrow_forward_ios
Ross Dress for Less

Ross Dress for Less signs lease at historic former Burdines building in downtown Miami

From left: Stambul’s Daniel Peña, Hotusa Group's Amancio López Seijas and Langford Hotel at 121 SE 1st Street (Credit: Google Maps and Hotusa)

Hotusa Hotels buys the redeveloped Langford for $37M

235 Southeast 1st Street, Mika Mattingly and Cecilia Estevez

Downtown Miami office building hits market, brokers expect sale price to top $30M

From left: Santiago Vanegas, Harvey Hernandez, David Arditi, and Russel Galbut

In a sluggish condo market, these Miami developers find a sweet spot

Jon Paul Pérez, Jorge Pérez and the downtown Miami skyline (Credit: iStock)

Miami’s biggest condo developer is going micro

Renderings of 400 Biscayne and Kevin Maloney 

Developers land $162M loan for downtown Miami co-living tower

Brickell office skyline (Credit: iStock)

Office construction in Miami hits a new record

275 Northeast First Street and Sergio Rok (Credit: Google Maps)

Sergio Rok adds to downtown Miami portfolio

arrow_forward_ios