605 Lincoln Road retail space hits the market, could fetch $30M
The ground-floor retail space at 605 Lincoln Road in Miami Beach has just hit the market, and could fetch $30 million, The Real Deal has learned.
New York-based Thor Equities and ASB Capital Management, a Washington, D.C.-based pension fund advisor, own the 10,093-square-foot retail condo space. It is at the foot of the Compass office building, formerly called the Sony Music Building.
The space, divided into four stores, is 100 percent leased by Starbucks, Journey’s and Oakley, with Lush as a sub-tenant of Starbucks, Luis Castillo, managing director of HFF in Miami, told TRD. Castillo is listing the space with Danny Finkle, also of HFF.
“They’ve owned this for some time now and its an opportune time to monetize the asset,” Castillo told TRD. The target is $30 million, he said. The price equates to $2,972 per square foot.
Castillo said the current leases run to 2020 and are renewable. Lease rates, on a blended basis, are in the low $100s. “We expect, because of low lease rates, that a lot of these tenants will renew,” he said.
Lincoln Road has experienced a slowdown in leasing activity in recent months, and brokers have said asking rates, which had soared to as high as $350 per square foot or more, have declined to $275 to $325. “There’s a little weakness on leasing,” Castillo acknowledged. “Rents got high and are tweaking back a bit.”
But he said he is still “a believer” in the pedestrian promenade. “I’m extremely bullish on Lincoln Road,” Castillo said. “You go there at any given time of the day and year and you see a tremendous amount of traffic and energy on the block.”
The retail condo space, at the corner of Lincoln Road and Pennsylvania Avenue, has 150 square feet of frontage on Lincoln Road. Nearby are high profile retailers like H&M, Zara and Forever 21.
Built in 1936, 605 Lincoln Road is also home to Compass’ new offices, leased on the seventh floor.
CoStar Group data shows the entire sixth and seventh floors, with 20,600 square feet combined, are on the market for $22.5 million. Other spaces for sale at the 80,546-square-foot office building include unit 303, with 2,167 square feet, listed for $978,000; and units 210 and 420, with 2,454 square feet combined, for $1.3 million.
In September, New York-based Impulsive Group leased the 8,453-square-foot skydeck event space at 605 Lincoln Road, with an option to buy. The group’s lease includes a 272-square-foot office condo.