In what appears to be a race to pay the most for Design District property, this deal takes the cake. Actually, it takes the whole restaurant.
Miami Beach investor David Edelstein paid $65 million for three buildings in Miami’s Design District. The portfolio trading hands contains an atrium-style retail plaza at 130 NE 40th St. that includes one of Miami’s most notable foodie restaurants, a just-completed retail building next door and a single-story retail building at 135 NE 39th St. The square footage for the combined properties is approximately 22,000 square feet, according to leasing materials.
That means Edelstein is paying some $3,000 a foot for the existing buildings, or $3,300 per foot of land for the lots underlying his acquisition. Those prices are in line with deals closed earlier this month—70-74 NE 40th St. went for $3,223 per foot and 19-21 NE 39th St. got $2,888 per foot—although the total price tag of the Edelstein deal is much larger.
The deal, which closed July 22, delivers a monster profit to investor Russell Atlas, who bought the lots for a combined $1.9 million in the early 2000s and redeveloped the properties.
Arguably the most notable tenant in the property, restaurant Michael’s Genuine Food & Drink, has been in the Design District since 2007. It’s widely considered one of Miami’s best brunch spots and cited as a selling point for neighborhood boosters.
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