MIAMI HERALD – August 19, 2014 – BY INA PAIVA CORDLE
In one of the largest deals in South Florida’s history, the $342 million sale of six buildings on Miami Beach’s Lincoln Road closed on Tuesday. It marks the biggest transfer of property on the pedestrian promenade, with one of the sellers remaining part owner in the new entity.
Miami Beach-based Terranova Corp., and investment partner Acadia Realty Trust, the largest property owners on Lincoln Road, sold their six-building Lincoln Road portfolio to a new partnership of Morgan Stanley Real Estate Investing along with affiliates of Terranova.
The properties, sprinkled along the Lincoln Road and on nearby Lincoln Lane, include the sites of such popular Lincoln Road hang-outs as Sushi Samba and Dylan’s Candy Store. They were originally purchased in two parcels in February 2011 and December 2012, for a total of $191 million. In all, the transaction translated to a profit of $151 million — or 79 percent for Terranova and Acadia, in a combined total of a little over three years.
“It was a very rewarding investment for everyone involved,” said Terranova Corp. Chairman Stephen Bittel, calling it “one of the most exciting deals” in the company’s 35-year history.
Terranova will be the managing member of the new entity, and will continue to manage, lease and develop the properties, Bittel said. Two of the properties on Lincoln Road already have received Historic Preservation Board approval for expansions, allowing for a new large flagship retailer. And an additional development is proposed on Lincoln Lane, creating a three-level building, he said.
“We are fully engaged in the two redevelopments and the one ground-up development that are part of this portfolio,” he said. “And we remain laser focused on working with the city to make sure the redevelopment of the common areas is completed.”
“This partnership is very eager to grow its holdings on Lincoln Road, and the pricing is expensive, but from time to time we hope there are opportunities to increase our ownership,” he said.