South Beach Portfolio Sold to JV for $139M

Three Lincoln Road buildings in South Beach, Florida sold this month to a joint venture between Terranova Corp. and Acadia Realty Trust from South Beach Tristar Capital for $139 million, or more than $2,600 per square foot. According to a CoStar report, Tristar had acquired the portfolio in 1998 for $15.75 million, at the time setting a record with its $295 per-square-foot purchase price. "The rental rates on Lincoln Road have been skyrocketing to in excess of $250 a foot," according to Howard Taft, senior managing director at Miami-based Aztec Group.

"Over the past few years, Lincoln Road has established itself as a 'must-have' location for our retailers, with exceptional global branding opportunities matched by high sales productivity," stated Kenneth F. Bernstein, President and CEO of Acadia Realty Trust. "Tenants are attracted to this prime street-retail market as an essential component to their various multi-channel retailing initiatives. As such, we are pleased to continue building a presence along this vibrant international shopping and dining corridor in partnership with the extremely talented team at Terranova. We look forward to participating in Lincoln Road's next chapter with our valued partner."

The three-building portfolio at 719-838 Lincoln Road totaling about 60,000 square feet is fully leased to credit tenants including Aldo, Solstice, Tiramesu, Fossil, Kiehl's, SOBE, Steve Madden and the new Dylan's Candy Bar. Terranova intends to handle leasing and management at the buildings.

For more news and information visit Blumberg Capital Partners.