MIAMI-A 48,813-square-foot Best Buy has hit the Doral commercial real estate market. The $19.9 million listing price represents a 7.25% capitalization rate.
Marcus & Millichap won the exclusive listing on the property. Adam J. Tiktin, a vice president investments in the Miami office of Marcus & Millichap, and Paul D. Nudelman, a retail investment specialist also in Miami, are representing the seller, a local developer.
"Constructed in 2008, this prime net-lease building offers an investor with an excellent opportunity to acquire a property occupied by a Standard & Poor's credit-rated tenant in an A+ location," says Tiktin. "With an NOI of nearly $1.5 million, this investment will enable the new ownership to achieve solid year-over-year returns."
Located at 10760 Northwest 17th St., the 3.6-acre single-tenant net-leased property was a build-to-suit for Best Buy. The asset is situated between the Miami International Mall and Dolphin Mall, which offers more than 3.5 million square feet of space in Doral's heavily trafficked main retail corridor.
“We have seen a sizeable uptick in single-tenant retail deals coming to market,” Anthony Blanco, co-managing partner at Miami-based Plaza Advisors, tells GlobeSt.com. “At the same time are seeing increased demand for these deals.”
More than 50,000 cars pass by the site every day—and the site is located less than one mile from the Florida Turnpike and Dolphin Expressway. Potential demand also comes from the 40,000 students enrolled at Florida International University's main campus, which is less than two miles away.
The average household income in Doral is one of the highest in Florida at $110,000 annually. Doral ranked second on Forbes.com in its survey of "America's Top 25 Towns" for its cultural amenities, pro-business environment and highly educated workforce. The city was also recognized as one of the top places to do business by CNNMoney.com, and as a top retirement enclave by U.S. News & World Report.
“These investments are ideal for the passive investor since the management is very limited and many are used to satisfy tax-free exchanges,” Blanco says. “Due to the lack of comparable returns on other fixed income investments, investors are flocking to these single-tenant properties and capitalization rates are being rapidly compressed.”
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