Institutional Property Advisors (IPA), a division of Marcus & Millichap
specializing in serving institutional and major private real estate
investors, is pleased to announce the sale of Shoppes of Coral Way, a
48,993-square-foot shopping center in Miami and Victoria’s Secret South
Beach, a 13,131-square-foot, single-tenant net-leased property in Miami
Beach. Shoppes of Coral Way sold for $21,015,000, which equates to $429
per square foot. Victoria’s Secret South Beach brought $24,750,000, or
$1,885 per square foot.
IPA directors Drew A. Kristol and Kirk D. Olson represented the Shoppes
of Coral Way seller, a limited liability company from Coral Gables,
Fla., and both principals in the Victoria’s Secret South Beach
transaction. Christopher Marks, IPA Capital Markets associate vice
president capital markets, arranged the financing for the Shoppes of
Coral Way purchase.
“We worked closely with Drew and Kirk to assess the buyer’s financing
needs and then ran a competitive process that yielded a 10-year,
fixed-rate loan at 3.95 percent with 30-year amortization and a
step-down prepay from a life insurance company,” says Marks. “Our client
was very happy with this execution as it fit their needs perfectly.”
“The Shoppes of Coral Way presented commercial real estate investors
with a rare opportunity to acquire a trophy corner shopping center in
the heart of Miami-Dade County with mostly national tenants and
below-market rents,” says Olson. “Whether the existing tenant roster
remains the same and rental increases take effect over time, or a more
aggressive strategy of repositioning tenants is pursued in order to grow
the income at a more rapid pace, this investment presents virtually no
downside risk and offers tremendous rent growth potential.”
“Victoria’s Secret South Beach is an ideal investment with minimal
management responsibilities and a long-term double-net lease with 2.5
percent annual rental increases,” notes Kristol. “It is rare to find a
net-leased trophy asset within the Collins Fashion District.”
Developed in 1995, Shoppes of Coral Way is located at 2690 SW 22nd St.
and is 100 percent occupied. The center is anchored by Office Depot and
CVS. Other national tenants include The UPS Store, Check ’n Go, GNC and
RadioShack. The sole local tenant is a nail salon. The shopping center
has very low historical tenant turnover; all of the current tenants have
occupied the property for a minimum of 13 years.
Located at 745 Collins Ave., Victoria’s Secret South Beach is situated
amongst many of the most recognizable retailers in the world, including
Armani, Barney’s New York, Banana Republic and Guess. The retailer has
9.5 years remaining on a 15-year lease for the entire building, which
has 10,264 square feet of retail on the first two floors and 2,867
square feet of third-floor office and storage space.
With a network of senior-level investment advisors located throughout
the United States, Institutional Property Advisors (IPA) is qualified to
meet the needs of institutional and major private investors. IPA’s
combination of real estate investment and capital markets expertise,
industry-leading technology, superior support services and acclaimed
research offer customized solutions for the acquisition and disposition
of institutional properties and portfolios.
www.IPAusa.com
Copyright Business Wire 2015