Sam Herzberg buys building in Wynwood: $5M

Price equates to $784 psf for the renovated commercial property

Apr.April 25, 2016 08:45 AM

Real estate investor Sam Herzberg is expanding his holdings in Wynwood, paying $5 million for a commercial building in an off-market deal, The Real Deal has learned.

Herzberg told TRD he bought the 7,150-square-foot property at 21 Northeast 26th Street late Friday. It has a 6,377-square-foot, two-story building built in 1969 that is newly refurbished with office space and warehouse space. It also has a tenant in place, which Herzberg declined to disclose, citing a confidentiality agreement. A sign on the property shows it is leased to “David.”

The price equates to $784 per square foot for the building and $699 per square foot for the land.

The seller is Think Big 26th Street LLC., led by investor Doug Levine. Property records show he paid $1.09 million for the building in August 2013 before renovating it.

Herzberg said he was attracted to the property in part because of all the redevelopment taking place around North Miami Avenue, including the Related Group’s planned project in joint venture with Block Capital.

“That area of North Miami Avenue is really good, and there are a lot of nice restaurants and stores,” he said. “And on 26th Street, between North Miami and the railroad, there are a lot of buildings being renovated, and I think it’s going to be a great street.”

Herzberg, a well-known real estate mogul in Miami Beach and president of the real estate firm Sterling Building, made his first entree into Wynwood in March with the $22 million purchase of an entire block at 210 Northwest 22nd Street and 201 Northwest 21st Street. The property includes a 26,764-square-foot warehouse, built in 1941.

In Miami Beach, Herzberg owns such marquee properties as the Sterling Building at 927 Lincoln Road, as well as 901 Lincoln Road, the site of Victoria’s Secret. The two buildings encompass nearly a block.

He also owns the Banana Republic building at 8th Street and Collins Avenue, and the Walgreens property at Collins Avenue and 5th Street, as well as properties on Alton Road in Miami Beach, including the site of Starbuck’s. In Miami, he also owns a property on Southwest Eighth Street that houses a CVS.

And in late August, he paid $11.4 million for a two-story commercial building at 3800 Northeast Second Avenue in the Design District.

Wynwood has drawn a slew of investors in recent months. Last month, New York-based JSRE Acquisitions paid $35 million for an entire retail block along Northwest Second Avenue. The purchase included three buildings at 2301 Northwest Second Avenue, 2315 Northwest Second Avenue and 198 Northwest 24th Street.

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