A Chicago-based real estate firm acquired a retail building in the heart of Miami’s Coconut Grove for $23 million.
RKF Managing Director Benjamin Mandell said he represented L3 Capital in the acquisition of the 28,731-square-foot retail building at 3034 Grand Ave. from Grove Corner LLC, managed by Peter Gardner.
The deal equates to $801 per square foot.
The property last traded for $10.51 million in 2013, so the price more than doubled in value in three years. It was built on the 22,226-square-foot lot in 1925.
Mandell said the property wasn’t marketed for sale, but he saw the value of its location at the three main thoroughfares of Coconut Grove, Grand Avenue, McFarlane Road and Main Highway, and approached the owner. After about nine months of negotiations, they closed the deal.
“I was working in Wynwood and the Design District and prices are getting a little inflated, and there are few properties left, so I focused on other markets,” Mandell said. “Coconut Grove is in a dense corridor with an affluent population.”
Tenants include Masa Taqueria, Smoothie King, Souls, and NY Pizza. Mandell said the tenants are on short-term leases and there are several vacant spaces because the previous owner didn’t finalize a plan to develop the property. Mandell said RKF will help L3 Capital find new tenants.
“We can create a tenant mix that’s unique to what Coconut Grove is becoming – a cool, hipster, foodie environment and we can raise the rents to market rate,” Mandell said. “We want to bring the quality shopping experience so everyone who lives in the Grove can shop in the Grove and they don’t have to leave.”
The property is across from CocoWalk, which new owner Federal Realty Investment Trust plans to renovate and re-tenant.