MIAMI—The Gateway to Miami Beach has a new owner. The property, which consists of two net leased buildings occupied by national tenants, sold for $22.5 million, or $1,241 per square foot.

Scott C. Sandelin, an associate VP investments in Marcus & Millichap's Miami office, represented the seller, a Miami Beach-based limited liability company. Jonathan Gerszberg, a senior associate, also in the Miami office, secured the buyer, a private investor from New York.

“The properties' current mixed-use commercial zoning designation allows for several different uses in addition to retail,” says Sandelin. “This will allow for many future redevelopment options. The Miami Beach retail market demand continues to grow due to the proliferation of international, national, regional, and local tenants and the tourists, visitors, and locals who frequent the area to shop, eat, and enjoy the community.”

The Gateway to Miami Beach is located on the southeast corner of 5th Street and Alton Road where the MacArthur Causeway (Interstate 395) accesses Miami Beach. This intersection is in South Beach's South of Fifth (SOFI) neighborhood and is one of the most visible and highly sought after locations in Miami Beach.

“The buyer is extremely bullish on the South Florida market and plans to enjoy the cash flow from the long-term tenants as the surrounding market continues to appreciate,” says Gerszberg. The property sits at 1100 5th Street in Miami Beach.

Burger King and Pier 1 Imports are the tenants. The Pier 1 building consists of 8,504 square feet on the ground level with an additional 3,432 square feet on the second floor. The Burger King building is 5,000 square feet and includes a second floor with 1,200 square feet of air-conditioned storage and office space. All told, the lot totals 32,650 square feet.