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WeWork building in South Beach for sale, could fetch in high $40M range
![](https://static.therealdeal.com/wp-content/uploads/2015/11/Doug-Mandel.png)
The WeWork-leased building in the South-of-Fifth neighborhood of Miami Beach has hit the market without a price tag.
The property could sell in the high $40 million range, Marcus & Millichap’s Douglas K. Mandel, who’s active in South Beach, told The Real Deal.
The 43,500-square-foot Class B office building at 429-455 Lenox Avenue was listed for sale Sept. 7, according to CoStar. Convicted tax evaders and father-and-son developers, Mauricio Cohen Assor and Leon Cohen-Levy sold the five-story building in 2014 for $14.3 million, or $329 per square foot.
An affiliate of Goddard Investment Group now owns the property, which includes a two-story parking garage with 80 spaces. CBRE is listing the WeWork building. Agents Christian Lee, Jose Lobon, and Marcos Minaya did not respond to requests for comment.
![Doug Mandel of Marcus & Millichap](https://static.therealdeal.com/wp-content/uploads/2015/11/Doug-Mandel-200x300.png)
Doug Mandel of Marcus & Millichap
“Depending upon subtenants and the impact that income will have on the overall [net operating income] of the building, we can see this asset trading in the mid-to-upper 40s [millions],” Mandel, senior vice president at Marcus & Millichap, told TRD.
Before WeWork, Maclee had its name on the building. It was originally a Jewish cultural center, which was restored and redeveloped to include a landscaped garden and entertainment area on the rooftop, office space and parking, according to architect Kobi Karp’s website. It’s also undergone a multimillion-dollar gut renovation, according to GlobeSt, which first reported the listing.
WeWork signed a lease in April and moved in July. The shared office space company also has a location on Lincoln Road with plans for Brickell City Centre and downtown Miami.
The neighborhood, south of Fifth Street in Miami Beach, is home to high-end condo towers and restaurants that include Joe’s Stone Crab, Estiatorio Milos, the Continuum and Apogee. In May, the Fogo de Chao building at 834-836 First Street was listed for sale at $19.5 million, and later this year a low-rise condo complex at 65 and 75 Washington Avenue for $14 million.
Mandel, who’s listing the Sheridan Center on 41st Street and Arthur Godfrey Road, said there’s very little available office product in the Miami Beach submarket. Marcus & Millichap listed that office building unpriced, as well, but Mandel said he’s aiming for about $21 million.
He also brokered the deal of the Chase Bank building at 1801 Alton Road, which sold for $18 million in 2014, exceeding the asking price.
“It’s Miami Beach. There are some cap rate trades that don’t make sense anywhere else,” he told TRD. “The beach is on fire.”