Marcus & Millichap (NYSE: MMI) recently negotiated the sale of a Miami Beach Walgreens for $35.25 million. The two-story, 22,875-square-foot property at 509 Collins Avenue is located on the corner of Collins Avenue and 5th Street.
“We held an incredibly competitive sales process to this trophy asset in the heart of South Beach,” Ronnie Issenberg says, senior managing director of investments for Marcus & Millichap. “With over 12 years remaining on a 25-year initial lease term and with seven options to extend for five years each, our new buyer now possesses this unique rental opportunity that increases growth in both the initial term and during option periods. Additionally, Miami’s annual yearly visitors sits around 24 million, providing a constant demand for a renowned retail giant such as Walgreens to provide for the millions who visit South Beach.”
Issenberg, Gabriel Britti and Ricardo Esteves, investment specialists in Marcus & Millichap’s Miami office, had the exclusive listing to market the property on behalf of the seller, 509 Collins Realty, a limited liability company.
“Our competitive sales process created a multiple offer scenario, thus allowing us the opportunity to vet for the best buyer the market would bear, in this case, a large exchange buyer based in NYC,” Esteves says. “The sales price and cap rate are indicative of the flight to quality we are seeing today’s market environment and speaks to the overall demand for high quality and marquee assets such as this Walgreens, especially in Florida.”
Located one block away from Ocean Drive, the property benefits from being on the last vehicular intersection before entering the beach, providing enhanced visibility on South Beach and high foot traffic.
