A joint venture has finalized a major building acquisition in Miami’s Design District. The deal involves a joint venture between four real estate firms. The property is a mixed-use space, featuring luxury retail, showroom, and office tenants.
Major Acquisition in Miami’s Design District: $72.5 Million Deal
A joint venture between Pebb Capital, Wharton Properties, Lane Capital Partners, and Sabal Investment Holdings has acquired Design 41. The property is a fully stabilized mixed-use office and retail asset and was purchased for $72.5 million.
Located at 112 NE 41st Street within Miami’s premier retail corridors, the joint venture purchased the property from the privately held Norton family. This acquisition also marks the second partnership between Pebb Capital and Sabal. The acquisition was financed by 26North. Tony Arellano and Devlin Marinoff of DWNTWN Realty Advisors brokered the deal.
Companies Behind the Acquisition
A partnership between four companies is behind this acquisition. Pebb Capital is a multi-strategy real estate investment and development firm. Founded in 2014, it focuses on value-oriented and cyclically defensive investments. It has amassed a portfolio valued at over $2 billion.
Wharton Properties is a commercial real estate company owned by Jeff Sutton. It is known for changing the landscape of many major streets in New York. Over the past 25 years, the company has acquired 120 buildings in prime locations throughout New York and the tri-state area.
The third name in this venture is the commercial real estate company, Lane Capital Partners. With a strong preference for major and high-growth markets, it has built a formidable reputation over the years. Founded by Alan Leavitt, the firm has a 30-year track record in commercial real estate investing.
Finally, Sabal Investment Holdings is a fully integrated real estate investment manager. It serves institutional investors across the U.S. and identifies, underwrites, structures, and closes commercial real estate investment opportunities. The firm currently manages over $1.8 billion in assets.
Their joint venture in the Design 41 deal aims to maintain and further enhance the property. It intends to position the property as a leading destination for luxury retail and boutique office users.
Details of the Design 41 Property
Spanning approximately 50,000 square feet, Design 41 is a fully leased mixed-use space. The property includes approximately 40,000 square feet of ‘Class A’ office space. The space is occupied by family and financial offices and the new office of Foster + Partners.
The upper floor is anchored by the Bosch Appliance Showroom. The remaining 10,000 square feet includes retail and showroom space with tenants Missoni, Bond No. 9, and Breitling.
The property also benefits from open-air terraces, a 64-space covered parking garage, and its strong presence within the district. It is located adjacent to Tesla and Maison Margiela and is directly across from Gucci, Chanel, and Prada.
Miami’s Design District is one of the country’s most supply-constrained luxury retail and office markets. Fully leased and well-positioned, the asset is expected to support long-term value growth for the joint venture.
