A retail building in the South-of-Fifth neighborhood of Miami Beach hit the market for $19.5 million, Marcus & Millichap announced on Monday.
Records show a partnership between restaurateur Myles Chefetz and Nelson Fox of Miami Beach, and Durfee Day of Telluride, Colorado owns the property, which is leased to the Brazilian steakhouse chain Fogo de Chao.
Marcus & Millichap’s vice presidents of investments Drew A. Kristol and Kirk D. Olson are the listing agents for the 12,000-square-foot, single-tenant building at 834-836 First Street. Fogo de Chao has been a tenant since 2008 and has two years remaining on its lease with a five-year option, Kristol told The Real Deal. He said the lease was negotiated during the recession and is “extremely below market.”
Last month, the Related Group completed One Ocean, a 49-unit luxury condominium at 1 Collins Avenue. Marea South Beach, which opened last fall, is also nearby. Meanwhile, restaurants in the neighborhood include Joe’s Stone Crab, Estiatorio Milos and Prime 112.
The owners paid $2.8 million for the building in 2005, records show, and renovated it in 2007. It’s on the same block as Red Ginger and Radio Bar, properties owned by Russell Galbut’s Crescent Heights and run by Menin Hospitality. Galbut is reportedly building a single-family home on top of Red Ginger.
“The market is very strong, and there’s a lot of development and excitement in the South-of-Fifth corridor,” Kristol said. “You rarely can get 12,000 square feet of ground floor retail anywhere on Miami Beach.”