Terranova/Acadia Pay Record $139M for Lincoln Road Retail Portfolio
In what seems to be Florida’s largest retail acquisition of 2012, Terranova Corporation and Acadia Realty Trust paid $139 million for a three-building portfolio on Lincoln Road in Miami Beach. This addition of 801, 826 and 719 Lincoln Road to the Terranova/Acadia portfolio makes them the largest pure retail owner on the block.
The Miami Herald reports that the deal is being billed as the largest retail acquisition in Florida during 2012 in terms of dollar value, trumping Vornado Realty Trust’s $132 million purchase in July of 1100 Lincoln Road. The properties include a Fossil, Dylan’s Candy and Kiehl’s.
“These properties have huge upside as lease rates roll up to market,” said Terranova Chairman Stephen Bittel. “We look forward to bringing the best retailers in the world to join the impressive collection already on Lincoln Road.”
He added: “The only thing better than adding to our market-leading position on Lincoln Road is to once again be growing with Acadia as our partner. Their national urban high-street portfolio blends perfectly with Lincoln Road and enables them to add so much more than just capital to our joint investment.”
Back in February 2011, the two companies bought another three-building Lincoln Street portfolio consisting of 61,000 square foot of retail space for approximately $52 million. Since then, the company has brought to the area an Armani Jeans store and an Asian-themed Khong River restaurant.
Lincoln Road, an eight-block open-air pedestrian mall between Alton Road and Washington Avenue, is a popular destination for south Florida residents and tourists alike, featuring high-end restaurants, boutiques and bars where shoppers and diners can expect to enjoy the most modern shopping and entertainment paired with a lively nightlife scene. The street generates some of the highest per-square-foot sales in Florida as one of the only 24-hour retail destinations.
Moreover, Lincoln Road recently received international acclaim with the opening of H & M on Pennsylvania and Lincoln Roads. This coupled with the New World Symphony entertainment venue and the just-opened Forever 21 store has kept the eyes of world-class retailers sharply focused on the venue, which boasts daily pedestrian traffic estimated at over 25,000 people and retailers regularly reporting fashion sales of over $1,000 per square foot.
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