Prime location in up-and-coming corridor commands 11 offers from prospective buyers

Colliers International Vice President Marcos Puente has represented the seller of the Moon Thai & Japanese and Starbucks property along the South Dixie Highway Corridor near University of Miami. Located at 1114 South Dixie Highway in Coral Gables, the two-tenant strip center was sold for $6.4 million to Gem Pyramind LLC, an entity controlled by a private investor from Argentina. The seller was Gazebo Corp., who vetted 11 offers for the fully-leased property.

The investment property consists of 5,546 square feet of retail space on a 15,000-square-foot parcel. The one-story building is fully occupied by established and reputable Moon Thai & Japanese Restaurant and Starbucks, which have occupied the property for more than 16 years. The transaction highlights a growing demand for commercial properties along the South Dixie Highway corridor and investor confidence in the rent growth potential of the thoroughfare.

"The deal highlights the extreme demand for properties in the submarket,” Puente said. “We had 11 offers from multiple private owners, developers, and local private equity groups, all above the $6 million range. That shows the wide spectrum of buyers who are willing to pay a premium and accept a lower rate of return today to control key properties on South Dixie Highway near the University of Miami and mass transit, where land and retail space is scarce.”

The surge in investor interest along the South Dixie Highway corridor has been largely supported by an emerging retail landscape with strong fundamentals and extremely low inventory. Located directly across from the University of Miami campus, where over 16,000 students are enrolled and more than 4,000 students live on campus, the prime retail location also benefits from the exposure of 150 feet of frontage and daily traffic counts above 140,000 vehicles per day.

Home to one of the most dense year-round populations in Miami-Dade County, there are more than 900 residential units within a one-mile radius of the property, only a 4.4% vacancy rate and an average annual household income above $150,000.

Nearby development, such as The Underline, a 10-mile linear park and urban trail transforming the land beneath Miami’s Metrorail, is further boosting property values along the way. The corridor is also experiencing a wave of redevelopment with several projects under way, including Gables Waterway condominium, the mixed-use Gables Station, 224-apartment Paseo de la Riviera and the proposed redevelopment of Sunset Place into a mixed-use community planned by Zyscovich Architects.

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