Miami Design District’s Rimowa and Birkenstock Stores Trade for $27M

The shopping spree for commercial real estate in the Miami Design District continues. 

River Oaks Properties (ROP) paid $27 million for a property within the open-air, luxury shopping district, less than a month after Zara’s billionaire founder dropped $110 million for a site across the street. 

Located at 111 and 115 Northeast 40th Street, the 5,875-square-foot building is 100 percent leased with triple-net deals to high-end luggage maker Rimowa and shoe company Birkenstock, according to ROP. 

Both tenants have ties to LVMH, which is also an investor in the Miami Design District development. The French luxury giant wholly owns the luggage brand, while the shoemaker is majority owned by L Catterton, a private equity firm backed by LVMH. 

The seller, Harbor Group International, purchased the two-story building for $21.5 million in 2016, according to property records. Jordan Gimelstein of Inhouse Commercial represented the firm in the recent, all-cash transaction, while Pegasus Investments Real Estate Advisory worked on behalf of ROP.

The deal follows the $110 million purchase of the Atlas Plaza property across the street by Pontegadea, the family office of Amancio Ortega, who founded fast-fashion behemoth Zara. The 20,000-square-foot building counts Rolex, Oliver Peoples and the Michael’s Genuine restaurant as tenants.

Since the pandemic, the Miami Design District has become one of the hottest luxury shopping districts in the U.S. Craig Robins’ Dacra, in partnership with L Catterton and Brookfield Properties, owns most of the 18-city-block district and is responsible for its redevelopment into a luxury mall, which boasts Chanel, Hermes, and Prada boutiques among its tenants. 

Three years ago, the Dacra-led venture, alongside a slew of other partners, purchased a collection of buildings on the western side of the neighborhood for $165 million, and has tapped Pritzker-winner David Chipperfield to redesign the assemblage

Some tenants have purchased their own stores, too, including Alo Yoga. In 2023, the active wear brand, favored by influencers and celebrities, paid $22 million for its 4,957-square-foot store next door to River Oaks’ new purchase. 

For ROP, the acquisition marks its third in South Florida. In January, the El Paso, Texas-based firm paid $28 million for the space occupied by the high-end restaurant Catch in Miami Beach’s South of Fifth neighborhood. In 2022, it bought a Delray Beach retail center anchored by upscale grocer Joseph’s Classic Market for $26 million.

A representative for Virginia-based Harbor Group did not immediately respond to a request for comment. 

Julia Echikson can be reached at jechikson@commercialobserver.com.