The 13,624-square footretail building at 745 Collins Ave. in the heart of South Beach – leased to Victoria’s Secret – has sold for $17.65 million, or $1,331 per square foot.
Lori Schneider, a senior vice president investments in Marcus & Millichap‘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.
The asset was constructed in 1940 and extensively renovated in 2009.
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.
National retailers immediately surrounding the property include Ralph Lauren, Guess, Barneys New York, Armani Exchange, Club Monaco, K
enneth Cole, Steve Madden, Sephora and Dash.
“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,” said 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 sett
ing 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.”