Another Miami Design District building sells — for $28M

Another building in the heart of Miami’s Design District sold Tuesday — this time for $28 million, as prices in the gentrifying neighborhood continue to rise, The Real Deal has learned.

The 17,391-square-foot retail/office/restaurant building, at 35 Northeast 40th Street,  was sold to an affiliate of Brooklyn-based RedSky Capital and London-based JZ Capital Management. It is the buyers’ second purchase in the Design District this month.

Douglas Elliman agent Fran Clougherty represented the seller, 35 NE 40th St. LLC, whose registered agent is broker Jeff Morr.

RKF’s Benjamin Mandell represented the buyer.

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Last week, the same buyers purchased a nearby building at 1 Northeast 40th Street. That 19,436-square-foot building sold for $29.25 million.  RedSky and JZ Capital also paid $11 million for a 0.3-acre site at 2407 Northwest Second Avenue Wynwood in January, property records show.

Tenants in the property purchased on Tuesday include the popular restaurant Oak Tavern, which has an outdoor courtyard that fronts 40th Street. The three-story building, built in 1969, also has two retail tenants and two stories of fully leased office space, Douglas Elliman said.

The 12,500-square-foot property last sold for $2 million in 2004, Miami-Dade property records show.

Miami’s Design District is undergoing a transformation to a luxury shopping destination, spearheaded by Craig Robins, president and CEO of Dacra. By 2016, the 10-square-block district is expected to have more than 120 luxury-brand stores, a boutique hotel, 15 to 20 restaurants, luxury residential condos and lofts, galleries, furniture showrooms, as well as large-scale public art, design and graphic art installations.