Alo Yoga Buys Retail Condo on Miami Beach’s Lincoln Road
By Julia Echikson September 18, 2024 12:12 pm
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Is Alo Yoga stretching to Miami Beach?
The popular athleisure clothing and wellness brand bought a retail condo along Lincoln Road for $17.3 million, property records show. That’s equal to $1,283 per square foot.
The condo unit, on the ground floor of the Decoplage condo building at 100 Lincoln Road, spans 13,480 square feet at the southeast corner of Collins Avenue, just a few feet from the ocean.
The transaction came out of foreclosure proceedings. In 2021, LoanCore Capital Credit REIT filed a $30.6 million foreclosure lawsuit after the previous owner of the retail condo defaulted on a $34 million loan, which originated in 2018. An entity tied to Nightingale Group had purchased the property from Walgreens for $28 million in 2014. The Walgreens pharmacy has since closed.
That section of Lincoln Road, which has been afflicted with petty crime and homelessness in recent years, is set to undergo a makeover.
Earlier this year, the owners of the Ritz-Carlton, South Beach hotel, located across Lincoln Road from Alo’s newly acquired condo, secured $4.9 million from the State of Florida to reconfigure the block. The $12 million plans include turning the two-lane street into a four-lane road, adding landscaping and putting up murals.
In return, Miami Beach officials approved Ritz-Carlton’s controversial proposal to add a 15-story condo tower onto the oceanfront hotel. But its neighbor, the owner of The National Hotel, is suing to block the expansion.
Alo’s purchase marks the second time the brand has bought real estate in the Miami area. Late last year, it acquired the 4,957-square-foot building housing its store in Miami Design District for $22 million. The brand, which has made a name for itself by courting celebrities and influencers, counts stores at the Shops at Merrick Park and Aventura Mall.
The move is also part of a broader trend of retailers buying their own stores in a hedge against rent hikes, while the investment market has slowed down due to interest rate hikes. In New York, luxury fashion companies, Gucci-owner Kering and Prada, have spent about $2 billion on Fifth Avenue.
In the Lincoln Road transaction, David Abrams and Eliot Goldschmidt of masonre represented the buyer. Michael Grinfeld and Michael Comras of The Comras Company represented the seller. A spokesperson for Alo Yoga declined to comment. A representative for LoanCore Capital did not immediately respond to a request for comment.
Update: The story was amended to include the names of the brokers.
Julia Echikson can be reached at jechikson@commercialobserver.com.
