MIAMI—Recent commercial real estate transactions show properties on Flagler Street have appreciated into the three digits in the last 18 months. It took Miami Beach's Lincoln Road decades to experience that kind of appreciation.

What's going on? Marcus & Millichap's senior vice president of Investments Alex Zylberglait, who recently brokered the sale of 219 E. Flagler Street, offers some insights in part two of this exclusive interview series. You can still read part one: Why Flagler Street is Suddenly En Vogue.

GlobeSt.com: What kind of appreciation are we seeing in Downtown Miami, specifically along Flagler Street and nearby streets?

Zylberglait: Downtown Miami has seen strong appreciation over the last couple of years resulting from a resurgence in commercial, residential and public infrastructure projects. Both public and private enterprises are heavily investing to make downtown the "epicenter of the Americas."

Properties along the historic Flagler Street and surrounding areas have seen year-over-year appreciation in the 20% to 50% range depending on the type and location of the asset. Some have seen a drastic appreciation.

For example, I recently brokered the sale of 219 East Flagler Street, which just sold for $9 million, up from $2.6 million in 2009. The appreciation rate there was about 250%. Most of the appreciation took place in the last 18 to 24 months. There has been a purchase spree of commercial properties along Flagler and that has created a lot of excitement among investors and visionaries.

GlobeSt.com: Tell me more about the sale of 219 E. Flagler Street. Why that property was able to appreciate nearly 250% since 2009?

Zylberglait: This property was last purchased in 2009 at the low point in the cycle and the seller was highly motivated. All of the tenants at the property are on a short-term basis, which gives an owner the flexibility to reposition the asset.

The location of this property is prime, literally, steps from Biscayne Blvd and in the heart of Miami's Commercial Business District. With the new developments planned for the area, including the mixed-use transportation hub planned by All Aboard Florida, which will include residential, office, commercial and a retail concourse, and Miami WorldCenter, another mixed-use development not too far from here, Downtown Miami will be transformed in less than a decade.  

Savvy investors understand this and are looking to capitalize on the long-term potential of this area, that's why we are seeing price appreciation in this area. But one thing is clear to these buyers, their investment will pay off not in the short term but in the long-term.