April 25, 2019 — Avison Young’s Florida Capital Markets Group has been exclusively tapped to sell The Centre at Cutler Bay, a 127,072-gross-square-foot (105,091-rentable-square-foot) office/retail center at 18901 SW 106th Ave in Miami-Dade County submarket Cutler Bay, Florida. Proximate to South Dixie Highway/US-1, the 98-percent-occupied center features proven tenured tenancy in a thriving business corridor and a value-add development opportunity.
Avison Young Senior Vice President Rosendo Caveiro, CPA, and Principal John K. Crotty, CCIM, will lead the marketing and disposition of the asset along with Principals Michael T. Fay and David Duckworth and Senior Associate Brian de la Fé.
“Investors are eyeing recession-proof retail centers with diverse, internet-resistant tenant rosters,” said Caveiro. “At 98 percent occupancy, the Centre at Cutler Bay represents a rare asset with solid, in-place cash income in a highly sought-after submarket. No one industry type controls the center’s tenancy, providing downside protection from significant hits to income if a few tenants were to vacate, thus minimizing the vacancy risk for a new owner.”
Current ownership of the Centre at Cutler Bay has obtained preliminary approval from Miami-Dade County to develop a stand-alone building on the east side of the property along SW 106th Avenue with 7,500 square feet of rentable space, presenting a value-add out parcel opportunity. The proposed new building features a trapezoid shape that can be subdivided into six bays of varying sizes or with fewer bays for larger tenants, which would produce additional lease revenues.
“Over the past decade, the Cutler Bay retail submarket to the south end of Miami’s suburban expanse boasts year-over-year rent increases of at least 4 percent from less than $19 per square foot in 2015 to nearly $25 per square foot today,” said Crotty. “The area experienced low vacancy of approximately 3.5 percent and no new developments in 2018, underscoring the ideal timing for an investor acquire the Centre at Cutler Bay with the potential to develop additional space.”
Built in 2008, the Centre at Cutler Bay tenant base consists of child and adult day care centers, a career counseling center, offices for accountants, insurance agents, and real estate brokers, and various retail users. Just off Dixie Highway and along Marlin Road, the property serves over 150,000 upper-middle-class residents within a three-mile radius and is proximate to big-box retailers that draw additional consumers to the area.