Michael Comras, head of the Miami Beach-based Comras Company, is planning a significant redevelopment of a portfolio on Lincoln Road after acquiring 11 storefronts for $140 million. The purchase price was not confirmed by Comras but was disclosed to The Real Deal by a source familiar with the transaction.
The properties, located at 600, 719–737, 741, 801–821 Lincoln Road and 723 North Lincoln Lane, were financed through a $117 million loan from Acore Capital based in San Francisco. Morgan Stanley, which acquired the assemblage in 2014 as part of a larger $342 million deal with Terranova, was the seller. Terranova retained an interest in the properties.
Current tenants in the portfolio include The Cheesecake Factory, Salt & Straw, It’Sugar and Lincoln Eatery.
According to the press release, Comras intends to redevelop the area into a 150,000-square-foot boutique shopping district named NoLi (North Lincoln Road). The plan includes Via NoLi—an 18-foot-wide walkway through the 700 block connecting to North Lincoln Lane—which will feature boutique storefronts and dining options. Additional elements include NoLi Plaza with café seating, a central fountain and greenery; North Lincoln Lane will be converted from a service alley into a pedestrian path with new storefronts and expanded outdoor seating. Retail spaces are expected to range between approximately 400 square feet and 4,000 square feet.
A previous deal involving Duane Reade drugstore’s Cohen family to buy these buildings for over $150 million fell through when they could not secure financing or an equity partner.
Comras Company has operated since 1992 and also owns other properties on Lincoln Road such as 701 and 734-744 Lincoln Road. Its tenants include Aldo, Swarovski and Hoka. In addition to leasing services, Comras previously sold another block at 1001-1035 Lincoln Road to Pontegadea for $370 million in 2015.
Lincoln Road has experienced challenges recently as national tenants have left for areas like Miami Design District and Wynwood. Many storefronts remain vacant and landmarks such as Regal South Beach movie theater are closed. However, brokers report that occupancy rates are currently averaging around 77 percent with new tenants preparing to open businesses in some empty locations.
