As the hospitality industry booms in Miami, another great investment opportunity has just hit the market. The retail building located at 915-943 Washington Avenue in South Beach was just listed, and while there is no asking price, the “whisper price” is $20 million. According to a recent article from The Real Deal, the 22,030-square-foot building can be kept as-is, but the potential to redevelop into a mixed-use project, featuring a new hotel or residential component is great.
The building was built in 1937 by Henry Hohauser, a well-known South Beach Art Deco architect, and while Washington Avenue has fallen off the radar compared with popular Lincoln Road and Ocean Drive, the city is hoping to improve the area. Last October, a new zoning ordinance was approved, allowing building heights to jump to seven stories, making properties much more attractive to developers. The current building offers “in-place cash flow” from the rent of current tenants, but the potential for greater investment returns from redevelopment is obvious. By adding a hotel or residence component, the development site reaches 52,000 square feet.
Several real estate transactions have already been completed on the South Beach street in recent months. Last October, the 17,500-square-foot property at 743 Washington Avenue was purchased for $18.55 million by an Atlanta and New York-based real estate investment and management firm, Jamestown. JAW Commercial and Forte Capital Management also picked up the 4,500-square-foot building at 1331 Washington Avenue, while Weisman bought the 6,200-square-foot retail building at 1413 Washington Avenue. Plans for these properties include bringing new restaurant and retail tenants to the area.
For more information about South Beach real estate properties, contact Oceancia Real Estate at (786) 270-1743 or [email protected].