For Miami Beach-based Terranova and White Plains, New York-based Acadia, the 719, 801 and 826 Lincoln acquisition makes them Lincoln Road's largest retail landlords. The companies teamed up in February 2011 to buy three other Lincoln Road buildings for nearly $52 million.
"We have a 15-year relationship with the executives at Acadia and talked about doing things together for much of that time," Bittel said. "Independently, each of us has been growing our high street retail portfolios. They wanted to be in our market."
The three buildings acquired this week by Terranova and Acadia total about 60,000 square feet, which puts the purchase price per square foot at a whopping $2,300. Tenants include Fossil, Steve Madden and the Tiramesu restaurant.
Both of the Lincoln Road portfolios owned by Terranova and Acadia have future development rights, according to Taft, who was not involved in the most recent transaction but brokered the February 2011 deal for the companies.
"The synergy of this property with the other site will be the catalyst for them to control the western portion of Lincoln Road," Taft said.
Rental rates at the buildings are frequently less than half of what other Lincoln Road tenants are currently paying, according to Bittel. That gives the companies an opportunity to capitalize on future rent increases.
Terranova intends to handle leasing and management at the buildings, he said. It plans to work with the city of Miami Beach on any potential building improvements.
Bittel refused to rule out future acquisitions in the area by the Terranova-Acadia partnership.
"We're always looking to make advantageous buys in markets that have opportunities for growth," he said.
The seller of the buildings is South Beach TriStar Capital LLC, which is managed New York-based real estate firm TriStar Capital. TriStar owns the 475,000-square-foot Miracle Mile Shops at Planet Hollywood Resort & Casino in Las Vegas and the W South Beach hotel in Miami Beach.
Calls to developer David Edelstein, TriStar's president, were not returned by deadline.
Eric Kalis can be reached at (305) 347-6651.