By Keith Loria, Contributing Editor<\/p>\n
Morgan Stanley Real Estate Investing, along with affiliates of Terranova, have acquired a six-building portfolio of Lincoln Road assets in South Florida, for $342 million from the Terranova Corp. and its investment partner, Acadia Realty Trust.<\/p>\n
The transaction is one of the largest deals ever in South Florida, and the largest to date for 2014. The properties were assembled by Terranova and Acadia over the past three and a half years at a cost of $191 million.\u00a0Terranova will continue as managing member of the new partnership.<\/p>\n
\u201cWe have been thrilled to join with the other owners on the street and the visionary leadership of the City of Miami Beach, to play an important role in moving Lincoln Road forward,\u201d Stephen Bittel, Terranova\u2019s chairman, said in a company release. \u201cOur investment with Acadia Opportunity Funds has drawn more and more attention of\u00a0professional capital to the street.\u00a0 At the same time,\u00a0the interest from top international retailers has pushed sales and rents higher and higher.\u201d<\/p>\n
The properties consist of 600, 719-737, 740, 801-821, 826-838 Lincoln Road, and 723 N Lincoln Lane. Current tenants include Starbucks, Fossil, and the Khong River House restaurant.<\/p>\n
Morgan Stanley Real Estate Investing chose not to comment for the story, but Bittel said that this is just the beginning for the new joint venture.<\/p>\n
\u201cThe new partnership with Morgan Stanley Real Estate Investing will continue to seek opportunities in the market for this kind of unique asset of enduring generational value,\u201d Bittel said. \u201cThis long-term investment strategy focused on high street retail properties reflects the continuing trend of residents and tourists alike to be drawn to the top urban shopping streets, of which Lincoln Road is the absolute best, south of Madison Avenue in New York City.\u201d<\/p>\n
According to Jones Lang LaSalle, the only South Florida commercial property with a higher cost was the 2008 deal that saw a unit of the Dubai government acquiring a 50 percent share in the Fontainebleau Miami Beach for $375 million from Turnberry Associates.<\/p>\n
According to Bittel, the upcoming redesign of the Lincoln Road common areas and the redevelopment of the Miami Beach Convention Center will be positive influences that will keep the momentum of the area strong.<\/p>\n
Two of the Lincoln Road properties have already received Historic Preservation Board approval for expansions enabling the accommodation of new flagship retailer opportunities.\u00a0An additional development is proposed on Lincoln Lane, creating a three-level building of unique architectural interest.<\/p>\n
\u201cMiami Beach has had a magnetic attraction from around the world almost since developer\/creator Carl Fisher’s dreams started to become reality,\u201d Bittel said. \u201cWith a storied past to build upon, we look forward to an exceptional future of growing asset values, as we work closely with the community to make Lincoln Road better and better for both residents and visitors.\u201d<\/p>\n
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