The Real Deal Miami

Walgreens across from 1 Hotel & Homes South Beach hits the market for $11M

Walgreens has lease options until 2045
By Katherine Kallergis | January 09, 2017 01:30PM

Street view of Walgreens. Inset: Listing agent Scott Sandelin

A Walgreens on the corner of 23rd Street and Collins Avenue just hit the market for $10.75 million.

The property is across the street from 1 Hotel & Homes South Beach, in the Collins Park neighborhood of South Beach. Marcus & Millichap’s Scott Sandelin, vice president investments, and associate Alejandro D’Alba are listing the two-story, 16,705-square-foot store at 2300 Collins Avenue.

Walgreens has eight years left on its current lease term with a rent increase every five years. Its final renewal option ends in 2045, according to a press release. The building was constructed in 1955 on a nearly 11,000-square-foot lot.

Records show James Christopher Bishop, as trustee of the Candice Sara Bishop Reed Gift Trust, owns 50 percent of the property. The late Lynette Bishop of Houston, Texas transferred ownership of the building in 1995 to the trust. It last sold in 1977 and was last renovated in 2008, according to data from the CoStar Group.

Lefa Inc., led by Abe Lechter of Pennsylvania, owns the other 50 percent.

The building has 152 feet of frontage on Collins Avenue, office space on the second floor and five parking spaces. In that submarket, triple net retail asking rents are $59.17 per square foot, which marks an 11.6 percent increase from last year, CoStar Group data shows. Overall retail asking rents average nearly $38 per square foot, triple net.

Development has picked up in the Collins Park neighborhood, which is bounded by 17th and 25th streets, the Atlantic Ocean to the east, and Washington Avenue, Dade County Boulevard and Pinetree Drive to the west. LeFrak and Starwood Capital completed 1 Hotel & Homes at 102 24th Street in 2015, and it’s one of the three 1 Hotels being marketed for sale north of $800 million.

Also within walking distance is the Chetrit Group’s planned redevelopment of the Collins Park Hotel. Construction is underway at that site, at 2000 Park Avenue. And a few blocks south of the Walgreens, 30 condo-hotel residences and two retail units at the Boulan South Beach sold for $25 million in March of last year to a company tied to New York-based Think Hotel Group.

An earlier version of this story stated that the Bishop family owns the property in full. The Bishops own 50 percent, and Lefa Inc. the other 50 percent.