Steps away from Ocean Drive, Walgreens property in Miami Beach sells for $33 million

Steps away from Ocean Drive, Walgreens property in Miami Beach sells for $33 million

Commercial property at 509 Collins Ave. sold for $33 million. Walgreens would remain a tenant with a 14-plus-year lease term. MARCUS & MILLICHAP

A high-profile property on the corner of Collins Avenue and Fifth Streets in Miami Beach has sold for $33 million, just slightly above its 2014 sales price, according to brokerage Marcus & Millichap.

The seller, D & R Design District LLC, registered under real estate investor Sam Herzberg, purchased the commercial property at 509 Collins Ave. for $32 million in 2014, according to property records. Prior to D & R Design District LLC, 501 Collins Owner LLC owned the property and had bought it in 2012 for $30 million.

The buyer, a limited liability company, was secured and represented by Gabriel Britti, Ricardo Esteves and Ronnie Issenberg of Marcus & Millichap. Allied Partners, a real estate developer based in New York, purchased the land with a $21.1 million mortgage loan from Natixis, according to the Commercial Observer.

The property sold for about $1,500 per square foot.

Given that the site has a mezzanine space, the price per square foot was in line with the product on Miami Beach, said Issenberg in an interview.

The lot measures .35 acres. The site is occupied by a Walgreens and is located steps from Ocean Drive and Lummus Park.

More commercial properties are expected to come to the market soon. “With the low interest rate environment, we are gearing up for a busy 4th quarter! We are bringing quite a few properties to market in the near future which include several high price generational assets just like this Walgreens,” Issenberg said via a release.

Originally built in 1995, the store encompasses 22,875 square feet in a free-standing, two-story building. The drugstore chain has a 14-plus-year, triple-net lease that calls for the tenant to pay expenses including taxes, plus rent and utilities. The contract limits rental increases.

“The current equity market volatility, the lingering impact of potential trade wars, and today’s low interest rate environment have reiterated the stability of commercial real estate. As a result, we’ve seen an influx of additional capital enter into the sector allowing current investors to take advantage of the opportune time to maximize their returns via dispositions,” said Esteves, associate of investment at Marcus & Millichap, via a release.

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