November 4, 2019— Avison Young’s Florida Capital Markets Group closed the $16 million sale of the Centre at Cutler Bay, a fully-occupied, 127,072-square-foot office/retail center at 18901 SW 106th Ave. in Miami-Dade County submarket Cutler Bay, Florida.
On behalf of the seller, Cutler Center Holdings, LLC, Avison Young Senior Vice President Rosendo Caveiro, CPA, led the disposition to MMG Centre at Cutler Bay, LLC, an affiliate of Miami-based MMG Equity Partners. Avison Young Principals John K. Crotty, CCIM; Michael T. Fay, who is also Managing Director of the firm’s Miami operations; David Duckworth; Senior Associate Brian de la Fé; and Associates Berkley Bloodworth and Emily Brais assisted.
“Private investors are demonstrating a strong appetite in Florida’s retail market, accounting for 57% of sales in the sector in Florida to date in 2019,” said Caveiro. “With solid in-place cash income and a diverse, internet-resistant tenant roster, the Centre at Cutler Bay represented a unique investment opportunity in the highly-sought-after asset category. Ultimately, the property sold at the best possible price to an ideal buyer.”
In line with the trend of landlords seeking to backfill vacated space with internet-resistant, experiential retail concepts, the Centre at Cutler Bay tenant base consists of child and adult daycare centers, a career counseling center, offices for accountants, insurance agents, real estate brokers, and various other office/retail users. The buyer has the option to raise the current below-market rents and potentially build a stand-alone building on the east side of the property ideal for up to seven tenants, such as a bank or restaurant with drive-thru facilities.
“The Centre at Cutler Bay presented an opportunity to purchase a small bay office/retail center in a densely populated area of Miami, with a strong going-in yield, at a discount to replacement cost,” said Marcos Puente, Director of Acquisitions for MMG Equity Partners. “The Centre will outperform long term, as we are able to charge the lowest rents in the market, and benefit from significant barriers to entry for comparable product.”
Just off Dixie Highway and along Marlin Road, the Centre at Cutler Bay serves over 150,000 upper-middle-class residents within a three-mile radius. It is proximate to big-box retailers that draw additional consumers to the area.
Avison Young is the world’s fastest-growing commercial real estate services firm. Headquartered in Toronto, Canada, Avison Young is a collaborative, global firm owned and operated by its Principals. Founded in 1978, with legacies dating back more than 200 years, the company comprises approximately 5,000 real estate professionals in 120 offices in 20 countries. The firm’s experts provide value-added, client-centric investment sales, leasing, advisory, management and financing services to clients across the office, retail, industrial, multi-family and hospitality sectors.