Terranova Corp., in a joint venture with Acadia Realty Trust (NYSE: AKR), has snapped up three buildings along Lincoln Road for $52 million.The seller was an entity controlled by developer Craig Robins.
The 61,000-square-foot slice of Miami Beach’s most popular shopping and entertainment strip include tenants such as Starbucks Coffee, Geox Shoes, and restaurants Sushi Samba Dromo and Tacontento. There is also 12,000 square feet of offices available for lease above the restaurants, for those who want to people-watch while they work. Miami-Beach-based Terranova will oversee leasing and management.
Lincoln Road, which spans eight blocks between Alton Road and Washington Avenue, is the priciest retail district in South Florida. With average rents of $140 a square foot, it far outpaces rents along Palm Beach’s posh Worth Avenue, where average rents are $95 a foot, according to Cushman & Wakefield market data.
Even so, the price tag for the three-building portfolio might seem aggressive to some retail experts, considering that not all the retail space fronts on Lincoln Road. One of the buildings is at 723 N. Lincoln Lane.
“It is probably a good buy and probably a good sell,” said Greg Masin, senior director with Cushman & Wakefield. “It allows the buyer to become a material landlord in what is the most compelling market in South Florida. This is not a T.J.Maxx buy. This is a Nordstrom full-retail buy.”
Terranova Chairman Stephen Bittel wasn’t immediately available to comment, but had this to say in a statement:
“The three-property Lincoln Road acquisition greatly enhances our fashion-forward, street-front retail product. Terranova now has a 61,000-sqaure-foot presence on Lincoln Road, once known as the Fifth Avenue of the South, and we will expand that moniker to Lincoln Lane, as local and national tenants clamor for retail space as buyers make their return to Miami Beach.”
By: Darcie Lunsford, Real Estate Editor
Read more: Terranova group buys slice of Lincoln Road | South Florida Business Journal
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