Thor Equities lists Lincoln Road building for $17.5M

Asking price is about 30% below the market’s peak in 2015

Mar.March 02, 2020 12:30 PM
From left: 663 to 667 Lincoln Road, Joe Sitt, Tony Arellano and Devin Marinoff (Credit: DWNTWN REALTY ADVISORS)

From left: 663 to 667 Lincoln Road, Joe Sitt, Tony Arellano and Devin Marinoff (Credit: DWNTWN REALTY ADVISORS)

Thor Equities is looking to sell a retail property on Miami Beach’s Lincoln Road.

The building, at 663 to 667 Lincoln Road, is on the market for $17.5 million, or about $3,500 per square foot – about 30 percent below the market’s peak price of about $5,000 per square foot on the pedestrian-only retail street.

Thor’s 4,986-square-foot property is about 54 percent leased to Haagen Dazs and Pizza Rustica. A temporary tenant is leasing the remaining 2,269-square-foot space, according to the listing brokers, Devlin Marinoff and Tony Arellano of Dwntwn Realty Advisors.

“We believe that Lincoln Road is starting to find normalization,” Arellano said. “This is a great way to get onto one of the world’s best pedestrian streets.”

Marinoff and Arellano said that retail rents on Lincoln Road, which peaked at about $350 per square foot, triple net, are now about $250 per square foot, triple net.

In 2015, Zara billionaire Amancio Ortega paid $370 million for an entire block of Lincoln Road, marking one of the largest real estate deals in Miami-Dade history and the most expensive on the street. The properties include flagship Nike and Apple stores. They sold for about $4,900 per square foot.

Two years later, as rents and demand for retail space were already on the decline, German investment fund Bayerische Versorgungskammer (BVK) paid $283 million for 1111 Lincoln and an adjacent property.

“The tax base was so high on $5,000-per-square-foot sales that it made occupancy costs untenable,” Marinoff said.

New York-based Thor, led by founder and CEO Joseph Sitt, owns real estate in the U.S., Canada, Europe, Russia, India and Latin America, according to its website. In Miami, it owns properties in the Miami Design District and Wynwood. In Miami Beach, it also owns the ground-floor retail space at 605 Lincoln Road.

In June, Thor sold the hotel and retail building at 852 Collins Avenue for $5 million.

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