UPDATED June 2, 3:45 p.m. A retail building on Biscayne Boulevard in Miami’s Edgewater neighborhood has hit the market for $6.75 million, as the area surges with new construction.
Marcus & Millichap is listing the two-story property at 2400 Biscayne Boulevard. The 11,516-foot building at the corner of Biscayne Boulevard and 24th Street sits on a 12,650-square-foot lot. It was built in 1965, according to Miami-Dade property records.
Records show that Luis Morales Valerio paid $2.05 million for the building and an adjacent parking lot in 2004. In 2009, Valerio said he sold the parking lot, which had a value placed on it by the bank of $495,00o. Valerio is the owner and president of KOM, a furniture store that occupies the building.
The current listing price equates to $586 per square foot.
KOM can either vacate at closing or stay on for six months with increased rent, according to Marcus & Millichap’s Scott C. Sandelin, a vice president of investments, and Alejandro D’Alba, an associate, who have the exclusive listing on behalf of the seller.
Valerio told The Real Deal that he is not closing the store, and plans to move it to another as-yet-undetermined location in Miami.
“I think it’s a good idea right now,” he said. “Everybody is looking in the area and it’s a way for me to make a little bit of money.”
D’Alba told TRD that that the property “has a lot of exposure, a lot of eyeballs, a lot of foot traffic. So we see it as a re-tenanting deal.” The space can be leased by a single tenant or multiple tenants, with offices upstairs and retail downstairs, he said.
In addition, because the zoning is T-36-0, allowing up to 36 stories, a prospective buyer can sell off the air rights, D’Alba said.
Edgewater is exploding with new residential projects, including four Paraiso towers, Biscayne Beach, Elysee Miami and Aria on the Bay.
The developments, in turn, are boosting the area’s demand for retail space, commercial brokers say.
In late March, New York-based Infinity Real Estate paid $4.85 million for a retail condo space at Paramount Bay on Biscayne Boulevard. Infinity bought a 6,794-square-foot ground-floor site at 2063 Biscayne Boulevard, whose current tenant is Visionnaire, a home furnishings store. The price equated to $714 per square foot. Irma Figueroa, director of retail leasing and sales for the Comras Company, brokered both sides of that transaction.
“In Edgewater there are so many residential units going up it makes the retail more valuable,” Figueroa told TRD at the time.
Correction: A previous version of this story did not have the 2004 purchase price with the parking lot and included information from D’Alba that Valerio is selling the building due to a dissolution of partnership with his furniture store partner, which Valerio later said is not the case.