It is also apparent the Newark, NJ-based financial services firm considers the time is right to sell now that the Florida Department of Transportation has completed construction work on an adjoining roadway overpass at Ives Dairy Road and Biscayne Boulevard--once a source of some frustration for the property owner.
"Anybody who is looking at the property will want to know about the eminent domain action," J. Daniel Carlo, managing director, Sonnenblick-Goldman Co., tells GlobeSt.com. "For several years there was some uncertainly about the property, because of concerns about roadway access, loss of parking spaces and the impact on the entrances. But that uncertainly is now gone."
Carlo calls the shopping center "a property with cash flow." Sonnenblick-Goldman has the exclusive property listing.
A new Trammell Crow Co. market report suggests retail properties in Miami-Dade County, like the 30-acre neighborhood center in Aventura, may be prime targets for investment and redevelopment opportunities.
"The scarcity of land, combined with the current market equilibrium, may lead to the increased redevelopment of older, infill properties to generate space, keep rates even and attract new tenants to the (Miami-Dade) area," the report states.
Even though occupancy at Promenade Shops is estimated at 87%, the site is commanding rents in a range from $24 per sf to $26 per sf, plus operating expenses. The property has a cap rate around 10%, area brokers tell GlobeSt.com.
While the vacancy rate is higher than the market average, the retail center is commanding rents well above the market average. The Trammell Crow survey estimates the net rental rate for retail neighborhood centers in Miami-Dade County presently averages $17.83 per sf. Vacancy rates in the county average between 5% to 8%.
Among the anchor tenants at Promenade Shops are Circuit City, Marshalls' megastore, a Winn-Dixie supermarket, Michael's Arts & Crafts and Circuit City, all on 20-year leases with renewal options.
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