Pebb JV sells CVS-anchored retail space in Miami Beach for $18M
Torrance, California-based Capital Cove Investments paid $1,989 psf for the space
UPDATED, MAY 17, 3:32 p.m.: Pebb Capital and LeaseFlorida sold a CVS-anchored retail condo in Miami Beach for $18 million to a Torrance, California-based real estate investment firm.
Capital Cove Investments acquired the two-story, 8,896-square-foot space underneath a four-level parking garage at 4000 Collins Avenue, according to a press release. It is adjacent to Pebb Capital and LeaseFlorida’s Hampton by Hilton at The Continental hotel.
The deal breaks down to $1,989 a square foot. Cushman & Wakefield’s Blake Tagmyer and Brandon Price led a team that brokered the deal, the release states. Emerald Creek Capital arranged $13.3 million in financing for the buyer.
Cove Capital’s portfolio consists of about 50 properties in 25 states with an acquisition value of more than $250 million, according to the firm’s website.
Last year, CVS inked a long-term lease for 25.5 years at the site, the release states. Pebb Capital, co-founded by managing principals Todd and Jeff Rosenberg, and Miami Lakes-based LeaseFlorida completed the parking garage and retail condo in 2019, the same year the joint venture finished renovating The Continental, a historic 100-key hotel completed in 1948.
CVS-anchored retail buildings in Miami Beach sell for premium prices. In 2019, Philadelphia-based commercial real estate firm KNLB paid $18.3 million for a 12,415-square-foot retail building leased to CVS at 983 Washington Avenue, records show. And in 2015, Boston-based Rockpoint Group paid $30 million for a two-story, CVS-anchored building at 306 and 312 Lincoln Road in Miami Beach.
Established in 2014, Boca Raton-and-New-York-based Pebb Capital is currently redeveloping the Bancroft Hotel and the adjacent Ocean Steps commercial building in South Beach into a Class A office project that will offer a membership-style concept. The reimagined Art Deco property will offer private office space, four restaurants and a subterranean parking garage.
Pebb Capital is partnering with Miami-based Maxwelle Real Estate Group and Miami Beach developer Russell Galbut on the project. Pebb and Maxwelle paid $47 million for the Bancroft and Ocean Steps in September.