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Scott Solomon, president and CEO of Pan Am Equities and Train 71 at 7205 Northeast Fourth Avenue (DWNTWN Realty Advisors, LinkedIn)
For the second time in two years, Pan Am Equities is looking to cash in on an office business park in Miami’s Little River.
New York-based real estate development and management firm Pan Am Partners, managed by Scott Solomon, president and CEO, recently listed Real 71 at 7205 Northeast Fourth Avenue for $39 million, according to The Real Deal.
DWNTWN Realty Advisors Tony Arellano and Devlin Marinoff are marketing the nearly 4-acre property. In the year When the company and partner Morgan Reed Group bought the property in 2014, the two brokered the Pan Am deal, Marinoff said. The partnership paid $3.2 million and the 128,000 square foot building was completed in 1955, records show.
Pan Am bought Morgan Reed Group about a year ago, Marinoff said.
In the year A deal to sell Real 71 in 2020 for $33 million fell through due to the pandemic. DWNTWN immediately listed the property in Pan Am’s name for $32 million, but the owner took it off the market.
Pan Am and Morgan Reed have redeveloped the former warehouse into 98 percent occupied office and serviced retail. Marinoff said the property has a cap rate of about 6 percent, suggesting it would provide immediate value to increase rents when the lease expires.
Most of the tenants are on short-term contracts with options expiring in the next six years, the filing shows. The tenant mix includes interior and industrial design firms, fitness gyms and a few food and beverage establishments. The largest tenant is Focal Brewing Company, which occupies more than 11,000 square feet, and Publi Sushi has corporate offices in Train 71.
“Office rent in Wynwood is $70, $80 a square foot. [potential creative office tenants] He could make $30 a foot coming to Little River,” Marinoff said. “At Rail 71, the asking rent is $22 gross per square foot.”
Train 71 is less than a mile north of the Magic City Creative District, a massive mixed-use project on nearly 18 acres in Miami’s Little Haiti neighborhood by Miami-based Plaza Equity Partners, Montreal-based Lune Rouge and Dragon Global’s Bob Zangrillo. Pan Am completed an “A to Z” renovation of the building shortly after purchasing the property.
“It hit the market two weeks ago and we have four to five offers,” Marinoff said. That is very important. “
However, it is worth noting that none of these offers were at the asking price, but they indicated that they were getting close.
Pan Am, owned by the Manocherian family, owns 26 high-profile commercial properties throughout New York City, including the New York Health and Racquet Club. In July, a Pan Am partnership sold another Little River adaptive reuse property, a 47,000-square-foot office and industrial complex called Rail Two, for $11.6 million, records show. The partnership paid the railroad $3.8 million in 2015.
In November, the firm sold the Fort Lauderdale Marriott Pompano Beach Resort & Spa in Pompano Beach for $54.1 million, a gain of nearly $9 million on the $45.1 million purchase in 2018.
Although it is shedding South Florida assets, Pan Am is bullish on Miami, particularly in Little River, according to Marinoff.
The firm is currently a partner in Little River Center, a former office building being converted into a mixed-use project with 65 residential lots and 30,000 square feet of retail at 7924 Northeast Second Avenue, an online listing shows. Pan Am and its partner, Dr. Robert Daniel of Miami Beach, paid $10 million for the property in 2015, records show.
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