TriCap’s retail building on Lincoln Road that houses Lululemon and Greg Galy’s Mila is up for sale with a nine-figure price tag as transactions on the Miami Beach retail corridor heat up.
Newmark’s Adam Spies, Marcella Fasulo and Benjamin Lushing are marketing the 32,100-square-foot property at 800 Lincoln Road with a $100 million asking price, according to sources familiar with the matter. The brokerage declined to comment.
The asking price breaks down to $3,111 per square foot, which is 12.5 percent higher than the $2,744 per square foot, or $88.2 million New York-based TriCap paid in October 2015, records show.
TriCap redeveloped the property, built in 1935, into a three-story building right before the pandemic.
Six years later, 800 Lincoln Road has an enviable tenant roster, featuring high-performing global retailers and popular Asian and Mediterranean restaurants, with a five-year weighted average lease term. Lululemon recently signed a five-year lease extension.
Galy’s Mila, part of Miami-based Riviera Dining Group, ranked as the country’s top-grossing independent restaurant last year, according to Restaurant Business, bringing in $51 million in annual sales, with a meaningful share going to TriCap through percentage rent.
Another large revenue driver comes from Riviera Dining Group’s MM Members Club, where individual memberships start at $5,000 annually or a one-time $50,000 fee. The social club offers exclusive member spaces and events at RDG restaurants including Mila.
Retail property sales on Lincoln Road have picked up this year.
Investor Leon Zwick sold the 36,500-square-foot, three-story building at 930 Lincoln Road for $22 million last week to an LLC managed by Babba Yesharim, the CEO of Miami Beach-based Riverside District Development. BridgeInvest provided a $27.4 million loan.
Steven Sperandio, Ernesto Sanchez and Sam Selig from Cushman & Wakefield’s Equity, Debt & Structured Finance team in Miami arranged the financing for the buyer in that deal. The non-recourse bridge financing is secured by 930 Lincoln Road and additional land collateral that is already owned by the buyer. Michael Comras previously had the property under contract for $61 million in 2015, but the contract was terminated.
Last month, Scott Robins’ Robins Companies sold the 22,800-square-foot property at 318-334 Lincoln Road, next to CVS and home to Mr. Jones nightclub, for $18.4 million to Dallas-based Tabani Group.
Transformative redevelopments are coming for both ends of the Lincoln Road strip. Michael Comras’ NoLi District — expected to cost $30 million to build — is adding new storefronts and pedestrian passageways, and Sobe Sky Development is planning streetscape improvements along 100 to 300 Lincoln Road.
The retail strip has spent much of the past decade trying to regain its momentum after rents peaked at $300 per square foot, prompting national retailers and upscale restaurants to leave or downsize. The pandemic only added to those challenges as consumer habits shifted.
Lincoln Road retail space was over 80 percent occupied as of July, with rent prices ranging from $120 to $200 per square foot, according to Lincoln Road Business Improvement District president Lyle Stern. In the third quarter, the average retail asking rent in Miami Beach was $109 and total vacancy was at 4.7 percent, according to Colliers.
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