Fashion Institute Building in Miami Design District Sells for $27M
Istituto Marangoni signs a new 30-year lease to stay at the property
By Julia Echikson April 2, 2024 10:54 am
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A building housing a fashion institute in the Miami Design District has traded, the latest in a spate of sales in the luxury shopping district.
Store Capital paid $27.2 million for a seven-story building at 3704 NE Second Avenue, which is leased to fashion and design school Istituto Marangoni Miami. Concurrent with the sale, the institute, which opened in 2018, inked a 30-year lease with four five-year extensions.
The 19,279-square-foot property faces Interstate 195, by the northern edge of the luxury shopping neighborhood, property records show.
The seller, San Francisco-based Stockbridge Capital Group, purchased the property, which sits on 4,735 square feet, for $22 million in 2017, shortly after the building was completed.
Representatives for Stockbridge did not immediately respond to a request for comment. A spokesperson for Store Capital, which specializes in sale-leaseback transactions and single-tenant properties, could not be reached for comment.
The deal marks the third sale in and around the Design District within the past week.
Kolter Group and DaGrosa Capital Partners purchased a 1.4-acre development site just east of the Design District for $34 million, where they will likely develop a residential property.
Miami Design District Associates — the owners of the open-air shopping mall, which includes Craig Robins’ Dacra, and LVMH-backed L Catterton Real Estate private equity firm — paid $18 million for a retail building within the 18-block development.
Two years ago, the partnership bought a portfolio of 15 retail buildings along Northeast 39th Street for $165 million and has since tapped David Chipperfield, who won the Pritzker Architecture Prize in 2023, to redesign the assemblage.
Julia Echikson can be reached at jechikson@commercialobserver.com.
