One company under the control of a developer and broker in the state of Florida recently sold a retail facility for $24 million. The commercial real estate building is located in what is known as the Miami Design District and spans more than 8,000 square feet. Thus, the sale is equivalent to nearly $3,000 per feet.
It appears that this retail establishment may undergo redevelopment, as the buyer received a loan of $33 million for the property. The Miami Design District features 900,000 square feet and has attracted big deals from well-known firms, including Wharton Equity, RedSky and Thor Equities. These companies are known to pay a premium for properties and focus on redevelopment or on luring top-end tenants.
The owners of this design district bought the recently sold building back in 2011 for a little over $4 million. Thus, the recent sale generated a return of more than 460 percent. The facility was erected on a lot spanning 9,400 square feet.
Some commercial real estate deals are executed smoothly. However, the parties involved in other deals may end up struggling because they cannot find common ground with regard to areas such as the sale price and specific sale terms. Other matters can also be complicated to address, such as taxes and zoning. An unconsummated deal wastes energy, time and money. An applied understanding of real estate laws in Florida may help both buyers and sellers to strike a deal that will be in their best interests and help them to achieve their business and financial goals in the long run.
Source: bizjournals.com, “Comras sells Miami Design District building for $24M“, Brian Bandell, July 2, 2015