acquisition opportunity of the stefano ricci flagship
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ACQUISITION OPPORTUNITY OF THE STEFANO RICCI FLAGSHIP RETAIL STORE ON A LONG-TERM ABSOLUTE NET LEASE IN MIAMI’S DESIGN DISTRICT
ACQUISITION OPPORTUNITY OF THE STEFANO RICCI FLAGSHIP RETAIL STORE ON A LONG-TERM ABSOLUTE NET LEASE IN MIAMI’S DESIGN DISTRICTHolliday Fenoglio Fowler, L.P. (“HFF”), as exclusive advisor, is pleased to present the opportu-nity to acquire the STEFANO RICCI global flagship store in Miami’s ultimate luxury shopping destination—The Design District. STEFANO RICCI chose Miami’s Design District as its third lo-cation in the US and one of only seven global flagship stores in the world to showcase its fine collection of Italian luxury goods. Founded in Florence Italy in 1972, STEFANO RICCI today is a thriving full-spectrum lifestyle-brand offering men’s apparel, homewares, and furnishings, within opulent boutiques across the world.
Situated at 120 NE 39th Street, STEFANO RICCI occupies a ±10,346 square foot, three-level mansion that is nestled between Tiffany and Ermenegildo Zegna along the Design District’s primary artery that includes a prestigious roster of the most discerning and fashion-forward tenancy available today. STEFANO RICCI has committed to a long-term absolute net lease with one 5-year renewal option and has invested significantly to renovate the existing structure to meet its discerningly high standards. This offering represents an exceptionally rare opportunity to acquire a long-term absolute net leased single tenant high street retail property with contractual annual rent escalations and limited landlord obligations at the absolute epicenter of Miami’s bourgeoning Design District.
PROPERTY SUMMARYAddress 120 NE 39th Street, Miami, FL 33137
Year Built 1938
Building GLA ±10,346 SF
Site Size 4,700 SF
Tenant Stefano Ricci
% Leased 100% (Single-tenant)
Lease Type Absolute NNN (Tenant responsible for roof and structure)
Lease Term Remaining 10 years, one 5-year option
Tax Parcel 01-3124-030-0190
Assumable Financing Yes
Term of Financing 9 years remaining
Type of Financing CMBS
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112
836
MIAMI BEACH
VENETIAN ISLANDS
FISHER ISLANDKEY BISCAYNE
BRICKELLDOWNTOWN
WYNWOOD
MIDTOWN
DESIGN DISTRICT
EDGEWATER DISTRICTOver 2,000 residential units planned/under
construction in Edgewater District120DESIGN DISTRICT, MIAMI, FL
39
ACQUISITION OPPORTUNITY OF THE STEFANO RICCI FLAGSHIP RETAIL STORE ON A LONG-TERM ABSOLUTE NET LEASE IN MIAMI’S DESIGN DISTRICT
| One of only seven global retail flagship stores and the third US outlet for the premier luxury menswear brand STEFANO RICCI. The retailer generated sales of $150M Euros in 2014 out of its 35 global locations.
| Long-term lease through February 2026 with 3% contractual increases and one 5-year renewal option at market rent.
| Absolute net lease structure with tenant fully responsible for all operating expenses, real estate taxes, and structural repairs.
| Corporate guaranty of lease by S. Ricci America, Inc.
| Significant investment of capital by the tenant to fully renovate the existing structure and add additional GLA to building footprint.
| Substantially below market lease rate coupled with a sizeable capital investment from the tenant provides ample downside protection. Rents proximate to the Property range from +$300 PSF with all-in rates for multi-story buildings north of $200 PSF. At $116 PSF, the current rent is 42% below market levels.
| Epicenter location within the Design District along prestigious 39th Street which is home to global flagship stores for Louis Vuitton, Hermes, Ermenegildo Zegna, Dior, Cariter, Tiffany, Versace, Harry Winston, Bvlgari, Emilio Pucci, Miu Miu, Tom Ford, Lanvin, Van Cleef & Arpels, Rolex and Givenchy to name a few.
| The property is straddled by Tiffany and Ermenegildo Zegna and across the street from Rolex, Longchamp, and Michael’s Geniune.
| Assumable in-place debt with favorable terms and interest only payments through October 2025.
| Long term appreciation and growth potential with the emergence and ascent of the Design District.
| Favorable zoning designation (T6-12) provides long-term value creation potential through redevelopment of the site up to 37,600 square feet.
95
395
195
112
836
MIAMI BEACH
VENETIAN ISLANDS
FISHER ISLANDKEY BISCAYNE
BRICKELLDOWNTOWN
WYNWOOD
MIDTOWN
DESIGN DISTRICT
EDGEWATER DISTRICTOver 2,000 residential units planned/under
construction in Edgewater District120DESIGN DISTRICT, MIAMI, FL
39
150+LUXURY STORES
14 .6 MILLIONYEARLY VISITORS TO MIAMI AND THE BEACHES
4,800HOTEL ROOMS AND LUXURY CONDOMINIUMS
75.9%OF AREA VISITORS ARE TOURISTS
129,000VEHICLES PER DAY ALONG I-95
2,500+PARKING SPACES
$23.8 BILLIONIN DIRECT EXPENDITURES FROM VISITORS IN 2014
THE MIAMI DESIGN DISTRICTThe 18-square block Miami Design District has emerged as one of the world’s top luxury retail destinations and is largely controlled by an institutional partnership with a limited number of properties owned by third parties. Even within this context, the STEFANO RICCI building is distinguished given its position at the absolute epicenter of this activity which has attracted such notable retailers as Louis Vuitton, Hermes, Cartier, Gucci, Dior, Armani, Burberry, Rolex, BVLGARI, Valentino, and Versace among many others. Rivaling other elite shopping districts worldwide such as Paris’ Champs-Elysees, Rome’s Via Condotti, Hong Kong’s Causeway Bay, London’s New Bond Street, Los Angeles’ Rodeo Drive, New York’s Fifth Avenue, and Chicago’s Michigan Avenue, the Design District delivers architecturally significant structures in a curated environment that blends art, design, fashion and food.
DBCFitness
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Alex Turco
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Holliday Fenoglio Fowler, L.P. (“HFF”) a Florida licensed real estate broker.
©2016 HFF and HFFS (HFF Securities L.P.) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 22 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF together with its affiliate HFFS offer clients a fully integrated national capital markets platform including debt placement, investment sales, equity placement, advisory services, loan sales and commercial loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF.
HFF has been engaged by the owner of the property [properties] to market it [them] for sale. Information concerning the property [properties] described herein has been obtained from sources other than HFF, and neither Owner nor HFF, nor their respective equity holders, officers, employees and agents makes any representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all reference to age, square footage, income, expenses and any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a purchaser, and HFF, its partners, officers, employees and agents disclaim any liability that may be based upon or related to the information contained herein. Prospective purchasers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change.
hfflp.com
1450 Brickell AvenueSuite 2950
Miami, Florida 33131Telephone: (305) 448-1333
Fax: (305) 448-9499
Luis CastilloManaging [email protected]
(305) 448-5498
Danny FinkleSenior Managing Director
[email protected](305) 421-6544
Nat ScarmazziAssociate Director
[email protected](305) 421-6545
Kimberly FloresDirector Analyst
[email protected](305) 448-4778
Eric WilliamsDirector Analyst
[email protected](786) 532-2346