Mixed-use building in Miami’s Little River seeks $39 million – Business Observer

After a contract sale fell through two years ago as a result of COVID, a mixed-use building in Miami’s emerging Little River neighborhood is back on the market, asking for another $6 million.

Called Railway 71, the 127,562 square foot building offering flexible spaces is up for sale for $39 million. It houses the offices of the company Pubbelly Sushia popular South Florida restaurant chain, as well as the art gallery Point fifty-one. The asking price works out to $305.73 per square foot.

The single storey property sits on 3.6 acres at 7205 NE Fourth Avenue, two blocks west of Biscayne Boulevard. The owners, a Pan American Equities-led company, was under contract to sell the property for $33 million two years ago, but the deal fell through due to the pandemic, per The real deal and property records. The property was relisted for $32 million, but did not sell.

Little River is a Miami neighborhood vying to be the next Wynwood, a warehouse-laden neighborhood that has transformed over the past decade into a stellar nightlife spot and tech hub with companies such as Blockchain.com opening of offices.

Some of Rail 71’s tenants are emigrants from Wynwood, businesses that moved to Little River in part because of the neighborhood’s cheaper rent, listing brokers, DWNTWN Real Estate AdvisorsTony Arellano and Devlin Marinofftold Commercial Observer.

Rail 71 is 95% leased with rates ranging between $18 and $24 per square foot, gross modified, according to listing brokers, who say that’s well below Little River’s current market rate of $35 per square foot, gross. Rail 71’s capitalization rate is 5.8%.

“It’s very rare that you find a building with below-market rents on a good basis,” Arellano said. The buyer “could buy a six cap right now, but with an extra $10 a foot in market rents, [he or she] going to make a lot more money for sure.

In the coming years, Little River is set to get a major facelift from the developers who helped put Chicago’s now fashionable Fulton River neighborhood on the map. At the end of last year, Capital Partners Adventurous Journeys paid nearly $80 million for assets around the neighborhood, totaling approximately 24 acres.

The neighborhood is already coming into its own, packed with popular Miami restaurants including by Rosie and Tran A. Oolite artsan organization that provides affordable housing and studios for artists, is building a campus with plans to close its location on Lincoln Road.

Julia Echikson can be contacted at [email protected].

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