Design District Retail Building Sells For $2,117 PSF

A retail building in the Design District has sold for what the transaction broker reports is a price-per-square-foot record of $2,117 for the Miami neighborhood.
The $10.5 million sale of the corner building at 101 NE 40th St. closed Friday, according to a statement from Chariff Realty Group Inc., which arranged the sale. Miami-Dade County has not yet recorded the transaction.
A company registered in Delaware, 101 Miami DD Blue LLC, is the buyer, according to Chariff. Delaware corporate records do not disclose company principals. The buyer is not affiliated with Miami-based Dacra Corp., which is building a $312 million mixed-use development that could transform the district into a luxury retail hub.
Whitehall Realty Advisors LLC managing director Devlin Marinoff and investment sales director David Spitz represented the buyer. Marinoff said the buyer is “a real estate family out of New York.” He declined further comment.
The seller, 10140 Design LLC, paid $2.1 million, or $423 per square foot, for the building in December 2007. Jerome Shaw manages the Miami-based company, according to state corporate records.
In the statement, Chariff president Lyle Chariff called the price per square foot a “genuine game-changer” for the Design District. Price appreciation stems from Dacra attracting luxury retail brands like Cartier, Hermes and Louis Vuitton to the area.
“Much of the new interest is coming from top real estate names in Manhattan,” Chariff said. “These are sophisticated buyers with a proven ability to discern trends in commercial real estate.”
Dacra holdings totaling more than 19 acres are concentrated between Northeast 38th and 42nd streets and First and Second avenues. The property that sold for $10.5 million is within that footprint.
Led by founder Craig Robins, Dacra has a history with transformative developments in South Florida. Most notably, the company was involved in the renovations of historic Art Deco hotels in South Beach, including the Marlin, Cavalier, Leslie, Kent and Governor, during the late ’80s and ’90s as the area’s population shifted from seniors to a younger trend-setting crowd.
He also helped reposition Lincoln Road into a pedestrian-oriented outdoor shopping destination with a global draw.
The Design District has been an enclave of mostly home-grown art galleries and furniture and design showrooms. More recently, the neighborhood has added brand names and become a restaurant hub.
 
Source: DBR