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Lincoln Place Office Building in Miami Beach Now Available

Lincoln place office building in miami beach now available

Lincoln Place Hits the Market: A Look at the $82 Million South Beach Opportunity

Lincoln Place, a largely vacant office building in South Beach, is now available for sale with a projected price of $82 million. This eight-story property, located at 1601 Washington Avenue, has a storied history, particularly concerning a crowdfunding scandal.

Property Overview

  • Size:

    • 111,400 square feet of office space
    • 26,700 square feet of ground-floor retail
    • 499-space garage
  • Lease Details:
    • The ground lease is currently owned by Granite Point Mortgage Trust, based in New York. This lease is set to last until 2092, with the city of Miami Beach as the lessor.

Current Occupancy

As of now, Lincoln Place is only 14.8% leased, indicating ample opportunity for potential investors. Key points include:

  • All retail spaces are currently available.
  • The majority of office spaces remain unoccupied.

A History of Controversy

Constructed in 2002 on a 1.5-acre site, Lincoln Place is not without its complications. The property was embroiled in the CrowdStreet fraud scandal led by Elie Schwartz, CEO of Nightingale Properties. Schwartz and JBL Asset Management acquired the building’s ground lease for $80 million in 2016, with JBL holding an 8.7% stake.

Legal Troubles

  • In May, Schwartz received an 87-month prison sentence for wire fraud, having misappropriated approximately $62.8 million from nearly 800 investors for personal gain. Funds intended for an Atlanta office complex and Lincoln Place were misused.

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  • Schwartz attempted to sell Lincoln Place to Robert Rivani’s Black Lion and Mathieu Massa’s Massa Investment Group for about $82 million to settle with investors. However, Black Lion and Massa withdrew from the deal, jeopardizing Schwartz’s repayment plans.

  • In February, Granite Point reclaimed the ground lease from Nightingale due to an $84.7 million debt, which included principal and interest.

Former Tenants

From 2016 until 2022, Lincoln Place served as the headquarters for Starwood Capital, owned by Barry Sternlicht, before the company moved to a new office on Collins Avenue.

Changing Landscape of Miami Beach’s Office Market

As the pandemic shifted corporate dynamics, Miami Beach has transformed into a viable office market, attracting out-of-state businesses. Notable developments include:

  • The Fifth Miami Beach, currently under construction at 944 Fifth Street and 411 Michigan Avenue by Sumaida + Khurana and Bizzi+Bilgili.
  • The Eighteen Sunset building at 2759 Purdy Avenue, fully leased and completed by Deco Capital Group and RWN Real Estate Partners.

Conclusion

The listing of Lincoln Place at a target price of $82 million offers an intriguing opportunity for investors amidst a backdrop of legal challenges and past controversies. With a significant amount of space available for leasing, the potential for rehabilitation of this property aligns with the evolving landscape of Miami Beach’s office market.

For more insights into real estate opportunities and the dynamics of office spaces in South Florida, check out Commercial Real Estate Trends and Miami Business Journal.

This article provides a comprehensive overview of the Lincoln Place listing while being optimized for search engines, through strategic keyword placement, headings, and links to relevant resources.

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