Schneider, Kristol and Olson Marcus & Millichap represent the seller in $17.6 million sale of 13,624 s/f retail building

Marcus & Millichap Real Estate Investment Services has brokered the sale of a 13,624 s/f retail building leased to Victoria's Secret. It sold for $17.65 million. Lori Schneider, a senior VP investments in the firm's Fort Lauderdale office, and Drew Kristol and Kirk Olson, both senior associates in Miami, represented the seller. Sean Shahar Ziv, a net-leased property investment specialist in San Diego, represented the buyer, a foreign entity with an office in N.Y.C. "There were multiple all-cash offers on this property from not only South Florida buyers but also the Northeast, Midwest, South America and Russia as well," said Schneider. "With a lack of quality inventory in high-profile locations like Manhattan and Downtown Chicago, an increasing number of out-of-state and foreign investors are setting their sights on prime real estate in similar locations: Well-trafficked, pedestrian friendly corridors with high barriers to entry. Ultimately, the buyer of Victoria's Secret hails from New York City, and has ties to foreign capital, demonstrating intense demand from overseas investors for class A coastal real estate." The property is located at 745 Collins Ave. National retailers immediately surrounding the property include Ralph Lauren, Guess, Barneys New York, Armani Exchange, Club Monaco, Kenneth Cole, Steve Madden, Sephora and Dash. "This trophy asset was constructed in 1940 and extensively renovated in 2009," said Kristol. "The location's demographics are excellent with more than 164,000 people living within a five-mile radius and continued projected growth of nearly 12%." Victoria's Secret has a 15-year double-net lease on the property with 14 years remaining on the base term and one 10-year option to renew. Annual 2.5% rent increases during the base term and the option period are built into the lease. The building features 10,264 square feet of retail space on the first two floors and 3,000 s/f of office and storage space on the third level. Victoria's Secret LLC's annual gross revenue exceeds $5.4 billion.