Miami Design District Retail Property Sells For $4,596 PSF

A prime retail property in Miami’s Design District, home to luxury brands Rimowa and Birkenstock, has changed hands for $27 million.

The 5,875-square-foot building at 111-115 NE 40th Street was sold by Harbor Group International’s affiliate, 40th Street Miami Associates LLC, to Texas-based River Oaks Properties.

The deal, which worked out to $4,596 per square foot, marks River Oaks’ first acquisition in the Design District and its third in South Florida.

Pegasus Investments Real Estate Advisory represented River Oaks and will oversee management of the property, while the seller was represented by Jordan Gimelstein of Inhouse Commercial.

“We are excited to expand our luxury retail portfolio into Miami’s Design District and look forward to building a long-term relationship with Rimowa and Birkenstock,” said Adam Frank, President of River Oaks Properties.

The building, constructed in 2014 on a 5,000-square-foot lot, previously sold for $21.5 million in 2016, reflecting a solid gain in value.

Known for its concentration of high-end fashion, art, and dining, the Miami Design District commands some of the city’s highest retail rents. Still, not every property sale in the neighborhood sees an upswing—some recent deals have closed at a loss.