Midtown Realty Affiliate Buys Miami Shopping Center
- Nov 05, 2018
In a $78.2 million deal, an affiliate of Midtown Realty Group has acquired Downtown Dadeland, a 126,000-square-foot retail lifestyle center in Miami, from a joint venture between Duncan Hillsley Capital and Pebb Capital.
CBRE facilitated the deal on behalf of the sellers, with the firm’s Dennis Carson and Casey Rosen handling the transaction. Downtown Dadeland was 98 percent leased at the time of sale.
“It’s a true core location, opposite Dadeland Mall, a true fortress super-regional mall at the heart of a special zoning district promoting urban-level density and serving some of Miami’s densest, most established and affluent communities,” Carson, CBRE’s executive vice president, told Commercial Property Executive. “It had very successful tenancy, including an ideal mix of restaurants, fitness and service, and zero exposure to the internet. It also offered the buyer unusually strong income growth potential.”
Originally completed between 2007 and 2009, the property is located on a 7.5-acre urban infill site in the center of the stretch nicknamed Dadeland Golden Triangle across from Dadeland Mall.
The partnership between Duncan Hillsley Capital and Pebb Capital purchased the property in 2014 for $38.9 million from Downtown Dadeland Retail LLC.
Improving its investment
Over the four years it owned the property, the joint venture made substantial upgrades, including adding several restaurant, entertainment and fitness tenants. Its current tenant roster includes Pubbelly Sushi, Barley, Ghee, The Brick, Harry’s Pizzeria, Prime Cigar, The Brass Tap, Orange Theory Fitness and Hard Exercise Works.
Tenants in-place since the acquisition include West Elm, Men’s Wearhouse, Chilli’s, Panera Bread, Lime Fresh, Verizon Wireless and Surgical Park Center, an outpatient surgery subsidiary of Healthcare Corporation of America.
Located in the center of The Dadeland Triangle, Downtown Dadeland is bounded by three of Miami’s most heavily trafficked roads—The Palmetto Expressway, U.S. 1 and the Snapper Creek Expressway. It’s situated directly at the entrance of the 1.4 million-square-foot Dadeland Mall and is close by Pinecrest, East Kendall and South Miami.
“The Dadeland Triangle continues to evolve into the ‘urban suburban’ environment that Miami-Dade envisioned with the creation of the Downtown Kendall Urban District,” Carson said. “Several projects have recently been completed, others are underway or announced, all are or will be highly accretive to Downtown Dadeland well into the future.”
The property also includes a 433-space parking garage.
“The buyer has a generational view of this investment and will make strategic improvements when opportunities present themselves, they definitely think it can be made better over time,” Carson added.
Image courtesy of CBRE