Karakhanian sells Design District building

Stockbridge Capital paid $1,000 psf for Istituto Marangoni’s building

Alex Karakhanian and 3701 Northeast Second Avenue (Credit: Lndmrk Development)
Alex Karakhanian and 3701 Northeast Second Avenue (Credit: Lndmrk Development)

Developer Alex Karakhanian sold a building housing an international fashion school in the Miami Design District to Stockbridge Capital for $22 million.

Karakhanian’s Lndmrk Development sold the property at 3701 Northeast Second Avenue for $1,000 per square foot, according to a press release.

Milan-based Istituto Marangoni is leasing the 22,000-square-foot, seven-story building. The fashion school, which has other locations in Florence, Paris, London and Shanghai, signed a $13.5 million, 10-year lease earlier this year.

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Metro 1 Commercial’s Tony Arellano and Whitehall Realty’s Devlin Marinoff represented Karakhanian, while Stefano Santoro of Whitehall Realty brought the buyer. Karakhanian said he wasn’t planning on selling the property, but that the deal will allow him to buy other sites in Miami’s urban core.

The building, designed by Shulman + Associates, sits near the southeast entrance to the Design District. Developer Craig Robins recently completed phase two of the high-end shopping district, which includes Rag & Bone, Gucci, Dolce & Gabbana, Estefan Kitchen and more.

In August, Karakhanian paid $5.87 million for the building next door to Istituto Marangoni, which was not included in the sale to Stockbridge Capital. He said he’s in talks with high-end fashion and furniture design tenants for that building.