By Brian Bandell
A partnership between RedSky Capital and JZ Capital Partners paid $23.95 million, or $2,800 per square foot, for a building in the Miami Design District.
RKF Senior Director Benjamin Mandell, VP Drew Schaul and Senior Director John Ellis represented the New York-based buyers in the purchase of 45 N.E. 39th Street, an 8,553-square-foot building on a 9,400-square-foot lot. The seller was Miami-based Tishman Corp., managed by Ruth Tishman.
The two-story build was constructed in 1972. It last traded for $107,000 in 1992.
The Design District has been transformed into a destination for luxury retailers after Miami-based Dacra has redeveloped much of the neighborhood and installed public art displays. That has caused property values to skyrocket.
“Domestic and overseas capital has been pouring into Miami’s commercial real estate market and has been rising dramatically every quarter since 2011, making Miami’s retail sector one of the hottest of any of America’s gateway cities,” said Mandell. “And, with the Design District among the most in-demand retail markets in Miami, we are starting to see retailers make the move to the area to fill the remaining availability.”
RKF said RedSky and JZ Capital plan to re-imagine the recently acquired building for future use while incorporating similar architecture and design elements as found elsewhere in the Design District. It noted that a Fendi Casa store is across the street. RedSky and JZ Capital also own the neighboring building at 21 N.E. 39th Street, which it paid $24 million for in June.