For The Biggest Deals, Skip the Shotgun Approach
Some commercial real estate deals lend themselves to mass marketing, but others simply do not. The recent sale of 1400 Biscayne Blvd. to Related Group for $57.3 million was one of those deals that called for a smaller, targeted buyer pool. “When it came down to it, it was about the buyer’s track record,” says Marcus & Millichap’s Alex Zylberglait, the exclusive listing agent on the deal. “Related is one of the biggest players — if not the biggest — down here. For a deal this size, it was a good fit.”
The property itself is truly impressive. Encompassing nearly an entire city block, the 2.8-acre site between Brickell and the Design District sits at what Zylberglait calls the commercial, residential, and cultural epicenter of Miami. Located across the street from the Adrienne Arsht Center for the Performing Arts and just minutes from the world-renowned Wynwood Arts District, the Miami Design Center, and the Perez Art Museum (owned by Related CEO Jorge Perez), the property is ripe for redevelopment.
Related plans to develop a mixed-use project with three towers, comprising nearly 2 million square feet of luxury residential and retail space. However, it might be sometime before that happens.
“The existing property includes an office building as well as some retail and residential that will enable them to maintain it and cover their costs for years,” says Zylberglait. “They can afford to take their time because they don’t have their equity tied up in a piece of dirt. They’re in a good position.”
The seller also found the deal advantageous. Espacio USA, the U.S. arm of Spanish real estate firm Immobiliaria Espacio, was able to capitalize on a particularly strong market to exact a record price of more than $20 million per acre. The company, which purchased the property in 2010 for more than $32 million and had been planning a major redevelopment of the site, will look for other opportunities in Miami as well as in the European market.
He adds that in a complex transaction such as this, relationships play a key role in bringing the parties together. “Everyone knows who Related is, but we understand how important it is to maintain those connections,” he says. “Then, when you reach out with the right project at the right time, they pay attention. That’s what we do best at Marcus & Millichap, and it’s why we were able to put together a deal of this size.”