Allied Partners buys Walgreens in Miami Beach for $33M

Nearly 23K sf building was on the market for $36M with an NOI of $1.6M

TRD MIAMI /
Sep.September 05, 2019 12:30 PM
509 Collins Avenue and brokers Gabriel Britti, Ricardo Esteves and Ronnie Issenberg (Credit: Marcus & Millichap)

509 Collins Avenue and brokers Gabriel Britti, Ricardo Esteves and Ronnie Issenberg (Credit: Marcus & Millichap)

Investor Sam Herzberg sold a Walgreens-leased property on the corner of Collins Avenue and Fifth Street in Miami Beach to Allied Partners for $33 million.

Property records show Herzberg’s D&R Design District LLC sold the two-story 22,875-square-foot building at 509 Collins Avenue. Walgreens has more than 14 years left on its triple-net lease with rare rental increases, according to Marcus & Millichap, plus extension options. The Commercial Observer first reported the sale to Allied Partners.

It was on the market for $36 million with a net operating income of $1.62 million, according to Crexi.

For New York-based Allied Partners, the property adds to its holdings in Miami Beach. The real estate firm also owns the Savoy Hotel and a development site at 400 Collins Avenue, both near Walgreens.

Herzberg’s company paid $32 million for the Walgreens building in 2014, according to property records. It was built in 1995 on a corner 15,000-square-foot lot.

Herzberg owns the Sterling Building on Lincoln Road, and has proposed transforming it into a 130-room hotel. He’s also an investor in Wynwood and the Miami Design District.

A month ago, Walgreens said it planned to close about 200 stores in the United States. But the Collins Avenue store is considered a flagship for the pharmacy store chain, according to the Commercial Observer.

Gabriel Britti, Ricardo Esteves and Ronnie Issenberg of Marcus & Millichap represented both the buyer and seller.

Esteves said in a statement that investors are looking to take advantage of volatility in the equity market, low interest rates and the impact of potential trade wars.

Near the entrance to South Beach on Fifth Street, Crescent Heights and Terra are building a mixed-use tower with condos, rentals, retail space and a public park.


Related Articles

arrow_forward_ios
802 West Dilido Drive with agents Dina Goldentayer and Miltiadis Kastanis (Credit: Douglas Elliman)

Developer gets $15.6M for Venetian Islands spec home

Todd Glaser, Rony Seikaly and a rendering of spec home at 1635 W 22nd Street (Credit: Mary Beth Koeth, Getty Images)

Todd Glaser, Rony Seikaly close on Miami Beach spec mansion

Jeffrey Soffer and Fontainebleau Miami Beach

Jeffrey Soffer scores $1.2B refi of Fontainebleau Miami Beach

The LaLanne exhibit at The Real Deal’s event in October

Michael Shvo to unveil tropical gardens with LaLanne exhibit at the Raleigh

Thomas O’Reilly, John Marshall, Ivan Chorney and Michael Martirena with Continuum North unit 1402/03 (Credit: Douglas Elliman and LinkedIn)

Tech entrepreneur sells Continuum unit to Neuberger Berman exec

18901 Southwest 106th Avenue, MMG Equity Partners CEO Gabriel Navarro (Credit: Google Maps)

MMG Equity Partners picks up retail center in Cutler Bay

Daily Digest Miami

Missoni Baia lands massive loan, Babylon Brickell owner sells Overtown property: Daily digest

Rendering of the Plaza Coral Gables

Pinstripes bowling alley inks lease at The Plaza Coral Gables

arrow_forward_ios