IMC Equity Group bagged a retail center in Miami for $62 million, marking a 32.6 percent discount off its purchase price over a decade ago.
The North Miami-based firm bought Miracle Marketplace at 3301 Coral Way from an affiliate of Chicago-based Heitman, according to IMC Equity Chief Investment Officer Carlos Segrera. The buyer borrowed $42.5 million from Ocean Bank.
The six-story, 614,000-square-foot building includes a garage and 246,000 square feet of leasable space. It was completed in 1989 on a 3.5-acre site.
Miracle Marketplace is 98 percent leased, Segrera said. Tenants include Burlington, Nordstrom Rack, DSW, Marshalls, Five Below, Petsmart, Hooters and LA Fitness.
Heitman, led by CEO Maury Tognarelli, bought the property in 2013 for $92 million, according to records.
It’s unclear why Heitman sold the retail center at a discount. The firm didn’t immediately return a request for comment.
Generally, landlords that sell properties for less than they paid are faced with overdue or looming loan maturities and are having difficulty finding equity investors or refinancing due to skittish lenders. Those with floating-rate loans are struggling amid elevated interest rates. Yet, Heitman did not record a mortgage on Miracle Marketplace at the time of its purchase.
In Chicago, Heitman has faced loan troubles this year. In May, Beltway Commercial Real Estate bought the $42 million underperforming loan on a West Loop office portfolio owned by Heitman and R2. The buildings include 641 West Lake Street, 901 West Jackson Boulevard and 130 South Jefferson Street.
Led by CEO Yoram Izhak, IMC has more than $3 billion of assets under management spanning 11 million square feet, Segrera said.
In West Little River, the firm is developing a pair of six-story apartment buildings with 161 apartments, combined, and an adjacent self-storage facility at 2751 and 2795 Northwest 84th Street and 8400 Northwest 27th Avenue. Nearby, IMC also plans a roughly 1,000-unit mixed-use complex with workforce housing that may use the Live Local Act.
Discounted deals have popped up in South Florida, despite the tri-county region’s reputation as a haven from economic woes due to an influx of residents and companies over the past four years. Most sales have been offices, the hardest hit asset class.
IMC Equity and investor Alan Lipton bought the Sawgrass Technology Park at 1601-1699 Northwest 136th Avenue in Sunrise for $49 million in July, marking a 34 percent discount off its purchase price in 2019. Also in July, health care and life science products and services firm Steris paid $15.7 million for the office building at 1801 Northwest 66th Avenue in Plantation, marking a 5.5 percent discount off its price six years ago.