MIAMI BEACH-Joint venture affiliates of Terranova Corporation and Acadia Realty Trust inked a three-building deal to acquire landmark retail properties on Lincoln Road. The $52 million deal includes 741 Lincoln Road, 600 Lincoln Road, and 723 North Lincoln Lane—and adds about 61,000 square feet to its growing urban street front retail portfolios.
Lincoln Road, an eight-block open-air pedestrian mall between Alton Road and Washington Avenue, features high-end restaurants, boutiques and entertainment. The street generates some of the highest per square foot sales in Florida as one of the only 24-hour retail destinations. The recent opening of the New World Symphony campus designed by Frank Gehry has helped spur a mini-boom at the street mall.
“We are firmly committed to this concept of fashion forward, high-street retail,” Terranova Chairman Stephen Bittel tells GlobeSt.com. “We think Lincoln Road is best retail street south of Madison Avenue. The sales are great. The rents are great. The street continued to perform fabulously well throughout the recession. We’ve been trying to buy here for years and we are firmly committed to growing our position on the street.”
The Lincoln Road acquisitions mark the firm’s fourth, fifth and sixth buildings on Miami Beach. Terranova’s other three buildings are office facilities.
Current tenants at the just-acquired retail properties include Starbucks, Geox Shoes, and Zagat-rated restaurants Sushi Samba Dromo and Tacontento. Terranova will manage and lease the Lincoln Road properties with Terranova Executive Vice President Mindy McIlroy heading up leasing efforts. Bittel says Terranova will expand Miami Beach’s “5th Avenue of the South” moniker to Lincoln Lane as local and national tenants take up retail space and as buyers make their return to Miami Beach.
“We’d like to buy more on Miracle Mile,” Bittel says, noting the company owns eight buildings there. “We’d like to buy more or Lincoln Road—and there’s another street we’re thinking about. But like a lot of urban streets, there are many different owners and you have to find someone who’s ready to sell. It’s hard.”
As the prime destination for Miami Beach, Anthony Blanco, co-managing partner at Plaza Advisors, confirms that Lincoln Road has fared much better than most other retail properties in terms of occupancy and rising market rents over the past 36 months. This is a result, he says, of the property's appeal and substantial draw of tourists and residents alike.
"This transaction is indicative of the continued demand for high quality retail product in South Florida, which is seldom available," Blanco tells GlobeSt.com. "Acadia Realty Trust owns a number of similar high-quality assets throughout the Northeast and the acquisition of these buildings on Lincoln Road is consistent with their investment approach."
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