Current media coverage and upcoming developments hand-picked from the industry.

Behind Terranova’s $342M Lincoln Road Deal

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GLOBE ST. — August 22, 2014 — BY JENNIFER LECLAIRE — In one of the biggest-ever deals in South Florida, Miami Beach-based Terranova sold its six-building portfolio of assets on and around Lincoln Road to Morgan Stanley Real Estate Investing, along with affiliates of Terranova, for $342 million. Terranova assembled the assets over the past three and a half years for $191 million.

As Terranova chairman Stephen H. Bittel sees it, the deal is one of the most exciting his firm has closed in its 35-year history. He views the transaction as a partnership with other owners on the famed street—and the City of Miami Beach—to move Lincoln Road forward.

“Our investment with Acadia Opportunity Funds has drawn more and more attention of professional capital to the street,” Bittel says. “At the same time, the interest from top international retailers has pushed sales and rents higher and higher.”

Bittel calls the planned redesign of the Lincoln Road common areas and the redevelopment of the Miami Beach Convention Center “strong positive influences that will keep the momentum moving forward.” Meanwhile, he expects the new partnership with Morgan to seek additional market opportunities for these types of assets, which he described as having “enduring generational value.”

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$342 Million Sale Of Six Properties On Miami Beach’s Lincoln Road Closes

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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.

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Retail Buildings On Miami Beach’s Lincoln Road Sell For Record $342 Million

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MIAMI HERALD – August 6, 2014 – BY INA PAIVA CORDLE Terranova Corp. and its investment partner are selling a six-building portfolio at a record price for South Florida retail properties.

The biggest property sale on Miami Beach’s Lincoln Road — and one of the highest-priced deals in South Florida history — is in the works, as the South Florida real estate market continues to soar.

Miami Beach-based Terranova Corp., and investment partner Acadia Realty Trust, the largest property owners on Lincoln Road, have agreed to sell their six-building portfolio on Lincoln Road for $342 million.

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