Wednesday, May 4, 2011
Investors from all over the world bid on this single-tenant net-leased asset, which traded for $1,331 per SF
MIAMI BEACH, FL, May 4, 2011 – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has brokered the sale of a 13,624-square foot retail building leased to Victoria’s Secret (top left photo).
The sales price of $17.65 million represents $1,331 per square foot.
Lori Schneider (lower right photo), a senior vice president investments in the firm’s Fort Lauderdale office, and Drew Kristol and Kirk Olson, both senior associates in Miami, represented the seller. Sean Shahar Ziv, a net-leased property investment specialist in San Diego, represented the buyer, a foreign entity with an office in New York City.
“There were multiple all-cash offers on this property from not only South Florida buyers but also the Northeast, Midwest, South America and Russia as well,” explains Schneider.
“With a lack of quality inventory in high-profile locations like Manhattan and Downtown Chicago, an increasing number of out-of-state and foreign investors are setting their sights on prime real estate in similar locations:
“Well-trafficked, pedestrian friendly corridors with high barriers to entry. Ultimately, the buyer of Victoria’s Secret hails from New York City, and has ties to foreign capital, demonstrating intense demand from overseas investors for Class A coastal real estate.”
The property is located at 745 Collins Ave. in the heart of South Beach (lower left photo). National retailers immediately surrounding the property include Ralph Lauren, Guess, Barneys New York, Armani Exchange, Club Monaco, Kenneth Cole, Steve Madden, Sephora and Dash.
“This trophy asset was constructed in 1940 and extensively renovated in 2009,” says Kristol. “The location’s demographics are excellent with more than 164,000 people living within a five-mile radius and continued projected growth of nearly 12 percent.”
Victoria’s Secret has a 15-year double-net lease on the property with 14 years remaining on the base term and one 10-year option to renew. Annual 2.5 percent rent increases during the base term and the option period are built into the lease.
The building features 10,264 square feet of retail space on the first two floors and 3,000 square feet of office and storage space on the third level.
Victoria's Secret LLC’s annual gross revenue exceeds $5.4 billion.
Contact: Stacey Corso, Public Relations Manager, (925) 953-1716