Steve Madden vacates Lincoln Road lease

Steve Madden leased 45% of the building

Miami /
Jun.June 08, 2020 12:30 PM
Steve Madden and 663 Lincoln Road (Getty, Google Maps)

Steve Madden and 663 Lincoln Road (Getty, Google Maps)

Miami Beach’s Lincoln Road could be in for a rough time as coronavirus hits the retail industry particularly hard.

Steve Madden vacated its lease at 663 Lincoln Road, according to the data provider Trepp. The shoe retailer notified the property owner, Thor Equities, that it would not be renewing its 2,269-square-foot lease on April 30.

The space accounted for 45 percent of the total square footage of the retail building, and is currently being marketed, “but there is no activity due to the economic uncertainty,” according to Trepp.

Thor Equities was also 30 days delinquent on its $7.3 million commercial mortgage-backed securities (CMBS) loan backing the building as of March, according to Trepp. The company is working with its borrower on relief for the loan, according to Trepp.

New York-based Thor Equities listed the Lincoln Road property for sale in March for $17.5 million or $3,500 per square foot, about 30 percent below the peak of about $5,000 per square foot on the pedestrian-only retail street in 2015. The listing brokers are Devlin Marinoff and Tony Arellano of Dwntwn Realty Advisors.

Arellano said he is in talks with a few institutional buyers, and the listing price remains the same. He said Steve Madden made the decision to vacate the property prior to the coronavirus pandemic. “It is the perfect size for a small fashion brand,” Arellano said.

Thor Equities did not immediately return a request for comment.

Thor Equities paid $15 million for the 5,000-square-foot building in 2012, property records show. It was built in 1935. Pizza Rustica is also a tenant with 1,700 square feet at 667 Lincoln Road.

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 in Wynwood. In Miami Beach, it also owns the ground-floor retail space at 605 Lincoln Road.

Thor has sold off some of its retail portfolio in New York in recent years. The firm sold a commercial condo at 51 Greene Street in April 2019, for about $14.6 million; and a trio of retail condos at 212 Fifth Avenue, which it sold to an international investor for more than $25 million.

CMBS loans are often deemed riskier than a conventional bank loan since the loans can be more difficult to rework and restructure when the borrower lands in trouble.
In April, South Florida’s retail market had an outstanding CMBS loan balance of $6.3 billion, according to data provided by Trepp. It was the third highest CMBS exposure of any metropolitan statistical area after New York City and Los Angeles.


Related Articles

arrow_forward_ios
Continuum South Tower at 100 South Pointe Drive in Miami Beach
Continuum sale tops weekly Miami-Dade condo sales
Continuum sale tops weekly Miami-Dade condo sales
6455 Pine Tree Drive (left) and Apax Partners’ Jason Wright with his planned home at 1400 West 23rd Street (6455 Pine Tree Drive Drive via Kobi Karp, Apax Partners)
Real estate, finance honchos seek approval for new waterfront homes in Miami Beach
Real estate, finance honchos seek approval for new waterfront homes in Miami Beach
Keith Kosow and 100 South Pointe Drive in Miami Beach (Getty, LinkedIn/Keith Kosow, Luxhunters, Google Maps)
Investment boss sells gut-renovated Continuum South Beach condo for $10M
Investment boss sells gut-renovated Continuum South Beach condo for $10M
Miami
A scavenger hunt for distress in South Florida
A scavenger hunt for distress in South Florida
Craig Robins and Jackie Soffer with 2511 Lake Avenue
Jackie Soffer and Craig Robins ask $45M for waterfront Miami Beach mansion
Jackie Soffer and Craig Robins ask $45M for waterfront Miami Beach mansion
From left: Rockstar Energy's Russell Weiner, Richard Meruelo, and Maria Meruelo along with 5101 Pine Tree Drive in Miami Beach (Getty, Google Maps, Coldwell Banker)
Divorce, foreclosure and an $18M offer: Inside the saga on Pine Tree Drive
Divorce, foreclosure and an $18M offer: Inside the saga on Pine Tree Drive
Arte Surfside at 8955 Collins Avenue
Arte Surfside closing tops Miami-Dade weekly condo sales
Arte Surfside closing tops Miami-Dade weekly condo sales
Alex Sapir and Yanina Sapir
How real estate’s rich live: Alex Sapir’s wife seeks $175K/month in divorce
How real estate’s rich live: Alex Sapir’s wife seeks $175K/month in divorce
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...