By Jennifer LeClaire – GlobeSt.com
MIAMI—Vornado Realty Trust is on a major retail acquisition roll. Beyond acquiring 666 Fifth Retail for $707 million, the REIT also acquired a prime South Beach retail building just days ago.
Vornado Realty Trust’s 25% owned real estate fund, Vornado Capital Partners, just acquired 1100 Lincoln Rd., a 167,000-square-foot retail property in Miami Beach, for $132 million. 1100 Lincoln Road is the western anchor of the Lincoln Road shopping district .
Vornado could not immediately be for comment. But GlobeSt.com caught up with Carter McDowell, partner at Bilzin Sumberg and local counsel to Vornado on the Lincoln Road transaction.
“There is no doubt about it, Miami is hot right now and this transaction is further evidence of its viability as one of the most in demand real estate markets in the country,” McDowell tells GlobeSt.com. “This isn’t the last major deal that we’ll hear about in coming months and in fact, there are a number of large national REITs that are currently pursuing other properties on Lincoln Road and elsewhere across the region.”
1100 Lincoln Road is 97% leased. Principal tenants include Regal Cinemas, Anthropologie, and Banana Republic. The building also includes a 298-space parking garage.
Vornado disclosed that the $132 million purchase price was financed in part by a $66 million new mortgage loan on the property. The loan bears interest at LIBOR plus 2.75% and matures in July 2015 with two one-year extension options.
A rendering showing an overview of Brickell CitiCentre. Swire Properties
Think Madison Avenue in New York or Michigan Avenue in Chicago: Urban shopping is a major attraction in any savvy city, but in Miami, that has long been the missing link.
The groundbreaking Wednesday for Brickell CitiCentre marks a key step in changing that paradigm and boosting Miami’s evolution as a 24-hour metropolis. The $1.05-billion urban shopping and mixed-use development will be spread over three blocks just west of Brickell Avenue and south of the Miami River. Connected by bridges and covered walkways, the 5-million-square-feet project will include a department store, luxury shops, restaurants, a hotel, office towers and condominiums.
For developer Swire Properties, Brickell CitiCentre is an investment in Miami’s future.
“This project is not about what exists today or three years from now when we open,” said Steve Owens, president of Swire Properties. “It’s about what exists 10 years from now. The transformational aspects of this project are contagious. It’s not just about doing a large development. It’s about changing this community.”
Outside the retail shops, many of the individual elements of the project aren’t that different from what already exists in Miami’s urban core. But put them all together, and the open-air design by Miami’s Arquitectonica creates a vibrant gathering spot and a sense of place among Miami’s sea of high-rise towers.