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.
Contacts:
Gina Relva, 925-953-1716
Public
Relations Manager
