A 49-year-old office building in North Miami Beach is under contract to be sold for just under its listing price of $10 million, a broker involved in the pending deal told the South Florida Business Journal.
Adam Tiktin, a managing director of mixed-use office and retail for the Tampa-headquartered commercial brokerage Franklin Street, said he brokered the pending deal to sell 16051 W. Dixie Highway with Gregory Matus, a Franklin Street managing director of multifamily and retail.
The two-story, 27,415-square-foot building is sandwiched between West Dixie/Harriet Taubman Highway and the train tracks, which houses a Regions bank branch and the SAE Institute of Miami, a technical school for aspiring audio engineers, producers, and entrepreneurs. Including a spacious parking lot, the triangle-shaped parcel is 41,449 square feet in size.
Its current landlord, Alberto Lensi’s Addi Properties LLC, paid $3.35 million for the commercial property in May 2014. Tiktin declined to name the potential buyer, but said it was a “local group” that’s not interested in replacing the current tenants, but will build on the vacant lot. Tiktin said he also couldn’t name the exact price the land is contracted to be sold for, but insisted it was pretty close to the asking $10 million price. Tiktin said the deal should close by January.
Tiktin said the sale demonstrates how North Miami Beach, especially the unincorporated Ojus neighborhood near Greynolds Park, is the next frontier for real estate investors.
In a separate deal Tiktin brokered May 6, William O’Connor, CFO for New York-based developer Arbor Management Acquisition Co., paid $10.3 million for 2.9 acres of vacant land at 17900 W. Dixie Highway soon after obtaining the development rights to build an apartment complex with retail.
Thanks to generous zoning, its location within an opportunity zone, and an abundance of aging low-rise buildings, Tiktin predicts that West Dixie Highway “is going to look very different two to three years from now.”
But Tiktin said it’s North Miami Beach, a 5.3-square mile municipality bordering North Miami and Aventura, which is receiving increased attention from developers, thanks to generous zoning that encourages high-rise development with retail, opportunity zones that provide federal tax breaks for investors, and an abundance of aging “vintage” residential and commercial buildings from the 1960s and 1970s.
Tiktin said that an area like North Miami Beach with a large inventory of older buildings, and little to no historical protections, is a prime hunting ground for real estate investors looking for deals.
“Investors are getting very aggressive mostly because the interest rates are so low, but there’s more capital out there than I have ever seen,” he said.