A joint venture of Terranova Corporation and Acadia Realty Trust acquired a retail portfolio on Lincoln Road in Miami Beach, FL from South Beach Tristar Capital for $139 million, or more than $2,600 per square foot.
The portfolio totals 53,260 square feet and spans 719 - 838 Lincoln Rd. in the heart of Miami's famed South Beach retail corridor. The center is fully leased to credit tenants including Aldo, Solstice, Tiramesu, Fossil, Kiehl's, SOBE, Steve Madden and the new Dylan's Candy Bar.
Lincoln Road Mall is an open-air, pedestrian-friendly shopping center stretching from Alton Rd. to Washington Ave. in what has become one of Miami's top tourist destinations, attracting visitors and locals alike to South Beach's 24/7 lifestyle.
Tristar had acquired the portfolio in 1998 for $15.75 million, at the time setting a record with its $295 per-square-foot purchase price. Fifteen years later the market is again seeing new development and planned renovations and expansions. In the last decade the market has evolved from small shops and boutiques to significant flagships for national and international reatilers including Apple, J.Crew, H&M, Forever 21 and Madewell, to name a few.
"When we acquired this portfolio in ’98 we were considered pioneers, but we saw this as an emerging market and had the vision that Lincoln Road could become one of the great shopping streets in the country alongside Madison Avenue, Michigan Avenue and Rodeo Drive," said David Edelstein, president of Tristar Capital. "The time has come to execute our disposition strategy and to deploy our assets into new emerging markets."
RKF and Ackmann-Ziff represented the seller, exposing the portfolio to a large pool of investors and aiding in closing the sale along with Tristar's legal counsel at Olshan Frome Wolosky.
RKF has now closed more than $270 million in Lincoln Road retail properties in the past six months alone, including Vornado Realty Trust's $132 million acquisition of 1100 Lincoln Road, which until this most recent sale held the previous record for highest price paid for a Florida retail property in 2012. Ackmann-Ziff's five-person Miami team is fully integrated with its New York headquarters, which has completed over $4 billion in transactions in 2012.
For more information on this most recent transaction, please see CoStar COMPS #2623878.