MIAMI-Northside Centre, an antiquated mall about five miles west of downtown Miami, has sold for $18 million, or $38 per foot. Built in 1960, the shopping center spans 475,579 square feet of leasable space.
Miami-based real estate brokerage Plaza Advisors’ Co-Managing Partners Anthony Blanco and Jim Michalak, together with senior financial analyst, Lenard Williams, represented the seller, an entity affiliated with Urban America, in the transaction. North Miami-based Gene Snyder & Company represented the buyer, a private investor in South Florida.
“This is an old mall that used be have a Sears and a movie theater,” Blanco tells GlobeSt.com. “Based on low income levels, the area hasn’t seen a lot of new residential development. But the shopping center serves a very dense population and draws from a wide trade area.”
Northside Centre is located at the intersection of NW 27th Avenue and NW 79th Street in unincorporated Miami-Dade County. The shopping center features a long list of prominent tenants including Walgreens, Presidente Supermarket, Payless Shoes, Citibank, Foot Locker, Rainbow Fashions, CitiTrends, Simply Fashions, and Dots. Northside Centre was built in 1960 and is 80% leased.
Northside Centre underwent renovations in 2005, but Beth Azor, principal of Azor Advisory Services in Ft. Lauderdale, tells GlobeSt.com there is “significant deferred maintenance.” As she sees it, the buyer still got an attractive price on the property at $18 million, but it may take years to realize the property’s full potential.
“Hopefully, the buyer will redevelop the property in the future and figure out a way to move all the pieces in the right direction,” Azor says. “There are a lot of government leases and long-term leases in the center. It’s not going to be easy, but nothing in life that’s great ever really is. This is an underserved retail market in an urban setting. Retailers want to be there.”
Indeed, Wal-Mart explored the area for a new location several years ago. Blanco says Northside Centre is sitting on irreplaceable real estate, and the buyer could not replace the mall for $38 a square foot. With talk of the Metrorail extending along 27th Ave. in front of the shopping center, the buyer could see even more foot traffic in this in-fill trade area.
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