Midtown Opportunities Acquires Shops at Sunset Place in South Miami for $65.5M
SOUTH MIAMI, FLA. — Midtown Opportunities, a real estate investment fund based in Miami, has purchased The Shops at Sunset Place in South Miami for $65.5 million. The open-air lifestyle property features nearly 515,000 square feet of retail and office space leased to tenants such as AMC Theatres and LA Fitness.
A partnership between Federal Realty Investment Trust (NYSE: FRT), Grass River Property Co. and Comras Co. sold the mixed-used development after more than five years of ownership. Midtown Opportunities has retained Grass River to manage the asset.
Federal Realty, Grass River and Comras sold Sunset Place at a significant loss, according to the Miami Herald. The newspaper reported in 2015 that the buyers purchased a majority interest of the once-popular mall from Simon Property Group for $110 million.
The Shops at Sunset Place is located on nearly 10 acres at 5701 Sunset Drive. The development is situated near the South Miami Metrorail Station, South Miami Hospital and the University of Miami.
No details were disclosed about Midtown Opportunities’ plans related to Sunset Place. The property was 78 percent leased at the time of sale. Other tenants include Barnes & Noble, Gametime and Splitsville, as well as the Yumbrella Food Hall that opened in March 2019. The acquisition also includes an eight-story parking deck comprising 1,862 spaces.
Danny Finkle, Manny De Zárraga and Maurice Habif of JLL represented Federal Realty, Grass River and Comras Co. in the transaction. The sellers also own CocoWalk in nearby Coconut Grove, where a new slate of retailers and restaurants opening at the development was recently announced.
Federal Realty Investment Trust is a real estate investment trust (REIT) based in Rockville, Maryland. The company’s portfolio comprises several mixed-use developments, including Santana Row in Silicon Valley, Bethesda Row and Pike & Row in Maryland, Assembly Row in Massachusetts and Pentagon Row in Virginia.
Federal Realty’s stock price closed on Friday, Jan. 15 at $87.27 per share, down from $130.88 a year ago.
Grass River Property Co. is a real estate investor, developer and operator based in Miami’s Coconut Grove neighborhood. Founded in 2013, the company is an affiliate of 3650 REIT, a Miami-based balance sheet lender.
Comras Co. is a retail investor, developer and brokerage firm based in Miami Beach. Michael Comras founded the company in 1992.
Midtown Opportunities is a Miami-based real estate fund founded by Alex Vadia, according to South Florida Business Journal.
— John Nelson