Madison Capital buys retail space at South Beach’s Boulan condo-hotel for $57M
Deal breaks down to $1,432 per square foot
October 21, 2016 10:40AM
The Boulan South Beach and Madison Capital Managing Partner Richard Wagman
In yet another big-ticket commercial property trade on Collins Avenue this year, Madison Capital just bought the retail component of South Beach’s Boulan building from BEB Real Estate for $57.3 million.
Madison acquired 40,000 square feet of retail space on the Boulan’s ground floor, located at 2000 Collins Avenue, the company announced on Friday. The deal, which breaks down to $1,432 per foot, also includes the building’s six-story parking garage.
The plan is to build the retail space’s value through “aggressive leasing initiatives,” according to Madison’s website. The New York investment firm has at least one flashy tenant lined up: Coya owner Arjun Waney plans to open DOA, a new Latin-Asian eatery with 160 seats at the building. Current tenants include fashion store Curve, rustic eatery Orange Blossom, hair salon Dry Deluxe among a handful of others.
Newmark Grubb Knight Frank brokered the deal.
BEB Real Estate, led by Bert Brodsky, built the 52-unit Boulan condo-hotel in 2010. In March, the developer sold 2,200 square feet of the building’s retail space along with 30 residential units to Saba Shemel earlier this year for $25 million. Madison purchased the remaining commercial space.
The sale is part of a string of retail property trades and listings along Collins Avenue in South Beach this year. In February, Thor Equities put its three-story retail building at 852 Collins Avenue for sale at $17.33 million, or $1,866 per square foot. And just last month, New York’s Riese family of restaurateurs bought the Club Monaco building at 642 Collins Avenue for $23.8 million, or $2,818 per foot, marking one of the street’s priciest trades to date.
Back at the Boulan, Madison financed its property grab with a five-year, floating rate $30.25 million loan from Wells Fargo. Dockerty Romer & Co. arranged the loan, and said in a statement that Madison purchased the property as part of a joint venture with an unnamed global investment manager. —Sean Stewart-Muniz
Source: The Real Deal