The Beach is Back – Two Property Sales at 550 9th St. and 250 Collins Ave. Highlight Resurgence of Investor Interest in South Beach Multifamily Market
MIAMI, FL – Cushman & Wakefield has negotiated the disposition of two multifamily properties in Miami’s South Beach totaling $33 million. The sales are indicative of increasing investor interest and sales activity in the South Beach market.
The first transaction was a six-story, 52,133-square-foot redevelopment property at 550 9th St., which sold for $17.6 million, or $338 per square foot to 550 9th LLC. The seller was ADME Real Estate LLC.
The second transaction was for a 23,260-square-foot ultraluxury property at 250 Collins Ave., which sold for $14.6 million to Drago Capital Miami LLC. The 27-unit property traded for $540,000 per unit, or $770 per square foot. The seller was TwoFifty Collins LLC.
“These are two important sale transactions on Miami Beach. After a couple of years of relatively flat sale activity, the beach is back,” said Weaver. “The near completion of the Miami Beach Convention Center, redevelopment of Washington Avenue and the North Beach Town Center project have investors bullish for opportunities.”
The property at 550 9th Street was built in 1966 and previously operated as a 196-bed, long-term care nursing facility known as Oceanside Extended Care Center. It has redevelopment potential for multiple uses, including hotel, apartments, short-term rental, office and medical. Located in the heart of South Beach, adjacent to Washington Avenue, the property is walking distance to South Beach’s many high-end shops and fine dining establishments.
The property at 250 Collins is situated in the South of Fifth (SOFI) neighborhood, which is considered one of the most desirable neighborhoods in the area. The property’s 27 units average 702 square feet and range from one to three bedrooms. Its luxury amenities include a rooftop pool with panoramic views, expansive terraces and balconies and state-of-the-art interior design.
Weaver added: “Foreign Capital, particularly from Europe, is among the most active in the market, and with virtually with no land to develop, investors are primarily focused on repositioning properties. We expect to see improved sales activity in the remainder of 2018 with several larger opportunities hitting the market.
Drago is a real estate investment and asset management company founded in 2000. Since its inception it has operated in the Iberian Peninsula and has now expanded its operations to the United States. Drago has launched 17 investment vehicles and closed transactions for more than 3.7 billion euros along with top national and international institutional investors. These investments comprise commercial real estate properties, residential units, tourist complexes, hotels and land, more than 1.990 properties with more than 830.000 square meters above ground and 1.2 million square meters of land. In 2017 DRAGO was awarded the number 1 asset management and real estate investment platform in Spain by the prestigious Euromoney magazine. Gonzalo Chueca is the managing director of Drago’s office in Miami. www.dragocapital.com
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