Heitman LLC has acquired the Miracle Marketplace located at 3301 Coral Way in Miami, FL for $92 million, or about $379 per square foot.
The 243,047-square-foot, class A, seven-story, vertically oriented retail power center, the only power center in the area, was originally built in 1986 on 3.5 acres in the Coral Way / Miracle Mile submarket of Miami/Dade County. The asset is 97 percent leased, with three floors of big-box retail anchored by Nordstrom Rack, Bed Bath & Beyond, Marshalls, Bally Total Fitness, PetSmart, DSW and Ulta.
AWE Talisman acquired the center in early 2000 for $20 million, according to CoStar data, and completed a comprehensive redevelopment of the property totaling nearly $110 million in renovations. AWE, under the leadership of president and CEO James Schlesinger, specializes in imaginative repositioning of shopping centers. Some of the company's more noteworthy projects include the transformation of the old Midway Mall into the famous Mall of the Americas, the first power center in the U.S., the first Hispanic-oriented mall in the U.S., and countless rebuilds and rebrandings around the country. Additionally, the company's Fashion Outlets brand has taken off, with its newest location set to open August 2013 in Chicago. The seller chose to divest this retail asset in Florida because it wasn't in line with the company's new model of outlet centers.
Jones Lang LaSalle's capital markets team of managing directors Carson Good, Margaret Caldwell, Kris Cooper and Denny St. Romain led the marketing efforts on behalf of the seller. The Florida capital markets division of JLL has closed more than $2.5 billion in transactions over the past two years.
Heitman was attracted to this high-quality asset with stable, national tenancy and well-positioned location in a densely-populated, high barrier-to-entry retail corridor offering substantial market growth, according to Carson Good.
"Heitman’s purchase of this irreplaceable asset with a towering physical presence will allow them to capitalize on Miami’s ongoing urban revitalization and strengthening retail fundamentals," added Good.
"Miracle Marketplace proved extremely attractive to investors not only for its inherent top-shelf qualities, but also because the overall retail capital markets continue to gain positive momentum. More trophy properties are coming to market with pricing not seen since before the Recession; capital is also building for retail opportunities - culminating in quicker closings," concluded Caldwell.
Please see CoStar COMPS #2654284 for additional information on this transaction.