Marcus & Millichap Senior Vice President and Institutional Property Advisors (IPA) senior director Douglas K. Mandel and Marcus & Millichap Vice President Investments and IPA director Benjamin H. Silver represented the Seller and Buyer in the sale of Grove Plaza, a 12,883-square-foot retail plaza located at 2750 SW 26th Avenue in Coconut Grove.
Grove Plaza Holdings, L.P. purchased the retail center for $6,900,000, or $535 per square foot. The deal closed July 1.
Mandel and Silver jointly represented both the Seller, Grove Plaza, LLC, and the Buyer in the transaction.
Grove Plaza, with 125 feet of direct frontage on South Dixie Highway, was constructed in 1988. The building, which sits on approximately 0.56 acres and features ample parking, was 100% occupied with an attractive blend of retail tenants at the time of the sale. Located one block from the entryway to Coconut Grove on US1, the subject property is one of the best located boutique retail centers in Miami with exposure to over 100,000 cars per day.
“A property of this caliber rarely hits the market and, as a result, was a highly sought after deal,” commented Mandel. “With multiple groups interested, the brokers and seller ultimately chose a buyer who was willing to waive due diligence immediately at contract,” he continued.
“This is a deal that worked out very well for both parties and their respective investment timeframes,” explained Silver. “The seller purchased the property a few years ago at a relatively low basis and was able to stabilize the center at higher rents. He saw an opportunity to capture an aggressive price at over $535 per square foot on a stabilized asset. The buyer liked the center as a long term play within a high growth market with future rental appreciation and potential development upside.”
Mandel + Partners has had a recent stellar track record within the US-1 corridor as well as Coconut Grove.
The team sold Shoppes of Pinecrest, a Starbucks-anchored retail center on US 1 for almost $700 per square foot.
They also negotiated the sale of Santona Corner, the modern high street retail trophy property off of US-1 in Coral Gables for $469 per foot and mid 6% cap rate.
In 2015, the team sold the Coconut Grove Portfolio, a pair of institutionally-owned office buildings for $42 million, equating to more than $300 per square foot and a sub 5% cap rate.
“All of these trades were at market-breaking prices and all were sold to out-of-area capital – a buyer pool Mandel + Partners has been able to effectively access,” commented Silver.
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