93 Miracle Mile_Stephen-Bittel

In $7M deal, Terranova adds another Miracle Mile building to Coral Gables portfolio

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THE REAL DEAL- January 5, 2022 BY FRANCISCO ALVARADO In a $6.8 million deal, Terranova added another Miracle Mile retail building to its Coral Gables portfolio.

The Miami Beach-based commercial real estate firm headed by Chairman Stephen Bittel bought the one-story site at 93 Miracle Mile, making it the 15th property Terranova owns on the street, according to a press release. The holdings span 120,000 square feet. Recently, Terranova obtained $55 million in refinancing for its Miracle Mile assets.

An affiliate of Wexford Capital, which is based in West Palm Beach and Greenwich, Connecticut, sold the corner property on Galiano Street for $800,000 below the previous purchase price from five years ago. The Wexford affiliate paid $7.6 million in 2016, according to records.

The 9,000-square-foot vacant building was previously occupied by Navarro Discount Pharmacy, which closed after the chain was acquired by CVS in 2014, the release states. In a statement, Terranova President Mindy McIlory said the firm plans to bring in a “strong, high-profile tenant.”

Terranova has nearly $1 billion in commercial real estate assets and purchased its first Miracle Mile property almost 20 years ago, the release states. In the past two years, the firm has acquired five properties on Miracle Mile, which underwent a $21 million streetscape makeover by the city of Coral Gables.

In October, Terranova paid $7.8 million for two storefronts at 232 Coral Way and 330 Miracle Mile, which are a few blocks west of the firm’s most recent acquisition. In another purchase last year, Terranova acquired a single-story building at 300 Miracle Mile for $6 million.

On a site at 220 Miracle Mile the company acquired for $12.2 million in 2013, Terranova had planned a two-tower, mixed use project with a 120-key hotel. The firm’s other holdings include 308, 348 and 360 Miracle Mile.

Last year, Terranova’s wheeling and dealing extended beyond Coral Gables. In February, the firm and its partner Terra sold a nearly 24-acre development site in Doral to logistics real estate investment firm GLP Capital Partners for $55 million. And last month, Terranova sold its longtime Miami Beach headquarters for $22 million to Fifteen Group in an off-market deal.

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Terranova sells Miami Beach HQ building for $22M

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SOUTH FLORIDA BUSINESS JOURNAL – December 10, 2021 BY BRIAN BANDELL Commercial real estate firm Terranova sold its Miami Beach headquarters office for $22 million and will look for new space next year.

The company sold the six-story, 51,806-square-foot office building at 801 Arthur Godfrey Road to Miami-based Fifteen Group. Terranova Chairman Stephen Bittel said his company and a sister company currently occupy about 13,000 square feet there and haven’t been leasing it out to third parties, so much of the building is not occupied.

Terranova acquired the office for $4.26 million in 2002, so it sold it for a big gain. It was built on the 22,135-square-foot lot in 1969.

“It’s a little sad that we are letting go of something that is near and dear to us,” Bittel said. “Our business plan has evolved over the years, and we just didn’t need that much space. Low interest rates and a focus on South Florida real estate has driven pricing very high.”

Bittel said Fifteen Group plans to renovate the building and lease it to third parties, which will create more opportunities to lure companies to Miami Beach. Teranova will lease space there for a year while it looks for a new headquarters.

Bittel said Terranova and its affiliates need about 20,000 square feet and are looking in Miami Beach and Coral Gables. He might purchase a larger building and lease out part of the space. He would also consider leasing.

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Terranova Sells Longtime Miami Beach HQ for $22M

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THE REAL DEAL – December 10, 2021 BY KATHERINE KALLERGIS
Terranova Corporation sold its longtime headquarters in Miami Beach for $22 million, marking one of the largest investment sales on 41st Street.

Terranova sold the nearly 52,000-square-foot building at 801 Arthur Godfrey Road to Fifteen Group in an off-market deal, Terranova Chairman Stephen Bittel told The Real Deal. Miami-based Fifteen Group, led by Mark and Ian Sanders, plans to renovate the building and lease it to family offices, wealth management and financial firms, according to a release.

Terranova paid $4.3 million for the property in December 2002, records show. The commercial real estate firm plans to stay on the top floor for the next year until it finds a new home base of about 20,000 square feet, Bittel said. The company will likely either stay in Miami Beach or move to Coral Gables.

Florida Dental Benefits, a Terranova company, will move with the firm. Terranova has investments in gas stations, car washes and convenience stores, as well as insurance and private equity. The company recently secured a $55 million refinance of its Miracle Mile portfolio in downtown Coral Gables.

A few sales have occurred along 41st Street, which is a main Mid-Beach thoroughfare that connects Miami Beach to the mainland via the Julia Tuttle Causeway. In 2016, Hyatt Hotels paid more than $229 million for the Confidante Miami Beach on Collins Avenue and 41st Street. And earlier this year, TRD reported that hospitality mogul David Grutman plans to reopen The Forge at 432 West 41st Street.

Bittel said it is “a great time to be a seller,” but said it was difficult to sell the Miami Beach property. “This is our home. It’s been our home for a long time,” he added.

Fifteen Group “quickly came in, and we reached a price agreement they think is too high and we think is too low,” Bittel said.

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