After a deal fell through to sell a rooftop deck and office space on Lincoln Road, the seller has dropped the price again, to $2.5 million, and is willing to go below $2 million, The Real Deal has learned.
The 8,453-square-foot rooftop and 272-square-foot second-floor office condo at the Sony Music Building at 605 Lincoln Road is being marketed by RelatedISG’s Miamism sales team of Enrique Garcia and Ines Hegedus-Garcia. The deal includes the business’ audio equipment, outdoor speakers, lounge sofas, fire pit tables, high-top tables and other furnishings for the event space, marketing materials show.
The property also comes with a “Hall For Hire” license that allows parties 365 days out of the year until midnight and beyond midnight with a special permit.
Originally on the market in January 2015 for $3.5 million, the price had been dropped to $3 million in October 2015, and now $2.5 million. The seller is Alain Zenatti, the owner of The Upper Deck LLC.
Zenatti is a boat captain, and “his heart has never been in the business,” Hegedus-Garcia said.
“The seller is highly motivated and will entertain offers under $2 million if it’s a quick closing,” she told TRD.
The Upper Deck purchased the space in 2011 for $90,000, records show. The rooftop is still currently being operated for events and parties.
“It’s a fantastic deal for someone who can maximize the use,” Hegedus-Garcia said. “And if you are able to change it to a lounge, it’s a home run, and whoever buys it will get their money back in no time.”
In April 2015 Michael Wilkings, a London-born entertainment executive from Toronto, told TRD that his company Howard Hospitality Group had a contract to buy 605 Lincoln Road’s rooftop space from the Upper Deck. However, he said the transaction wouldn’t close unless Miami Beach city officials signed off on a conditional use permit allowing Howard Hospitality to operate a 193-seat lounge that would be open until 2 a.m. seven days a week.
The Miami Beach Planning Board delayed voting for one month on the permit following objections from the 605 Lincoln Road Association, which represents the owners of the 47 office condo units in the building.
The day after that April hearing, the buyer called to extend the due diligence period. The seller agreed to extend it 30 days until after the new hearing date,” Hegedus-Garcia said. But Wilkings wanted five months.
“That’s why the deal fell apart,” she said.
The rooftop — Suite RF800 — and the office condo — Suite 270 — include condo fees of $7,427 a month, the marketing materials show.
Built in 1936, 605 Lincoln Road is also home to Compass’ new offices. Retail ground-floor tenants include Starbucks, Lush Cosmetics, Oakley and Journeys.