By Eleazar David Melendez
A sale in Miami’s Design District expected to close Wednesday would set a record price for the last four years and marks the entry of a large new player into the neighborhood, the Daily Business Review learned.
Chicago-based L3 Capital LLC is set to close on 3800 NE Miami Court, a 22,248-square-foot, two-story retail building custom built in 2011 for a high-end furniture showroom. A broker involved in the transaction said the $26 million deal values the building at $1,168 per square foot.
The seller, a company linked to furniture retailer Poltrona Frau Group Miami, purchased the land in 2009 for $2.49 million and spent close to $4 million on construction of its industrial-chic showroom, public records show.
The L3 purchase, arranged by broker RKF, is the largest sum paid in Design District deal in four years. Benjamin Mandell, John Ellis and Marty Arrivo at RKF’s Miami office represented the buyer, while the seller handled the transaction personally.
The deal isn’t the priciest on a per-square-foot basis seen in the high-end retail hot spot. In April, New York-based Thor Equities, which has dropped over $65 million in Design District acquisitions, paid $2,567 a foot for 120 NE 39th St.
“Miami’s retail sector is fast becoming the hottest real estate segment of any of America’s gateway cities,” Mandell, an associate at RKF in Miami, said. “New ownership at 3800 Northeast Miami Court will benefit significantly from redevelopment projects in the Design District, as well as new construction in nearby Wynwood and Midtown.”
Located across from the Design District’s designer parking garage and just outside the 11-block area being redeveloped by Dacra Developers, the 3800 building is significant for its bold architectural styling. The back of the building faces an I-195 overpass.