Black Lion Pays $63M for Miami Beach Office Building
With an additional $50 million investment, the new owners aim to redevelop the property as a high-end workplace.
Black Lion Investment Group has made its first office acquisition in Miami Beach, Fla., purchasing The Lincoln at 1691 Michigan Ave. for $62.5 million, with plans to redevelop the mixed-use property into a luxury office concept it’s calling ‘Class X.’ The seller was Clarion Partners, according to CommercialEdge data.
Led by President Robert Rivani, Black Lion expects to spend an additional $50 million to elevate the property that has 116,658 square feet of office space, 43,166 square feet of retail and 318,000 square feet of parking.
The privately held firm, which has offices in Los Angeles and Miami, also plans to use 5,000 square feet of the office space for its new flagship headquarters. Current tenants of the property include Apple, West Elm, William Sonoma, Morgan Stanley and Coldwell Banker.
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Describing most office spaces as conventional, Robert Rivani wants to redefine luxury and services standards in the office industry by delivering a highly amenitized experiential office and retail property that will integrate amenities, design, technology and hospitality-infused services. The project, called The Rivani, will be designed by renowned architecture and design firm Rockwell Group. Interior design firm Escala Forma Studios will also be working on the redesign.
The property will incorporate elements and features of an exclusive five-star hotel including a concierge, spa, mediation room, fitness center, salon, café, living room for meetings and gatherings, a podcast room, Japanese restaurant and speakeasy. Members will also have access to private event spaces.
The project is expected to be completed in mid-2025.
Largest office deal
Situated next to Sunset Harbor and Lincoln Road, the building is one of the largest in the area and the transaction marks the largest office sale in Miami Beach since 2016. Developed in 2003, the building is under a ground lease with Miami Beach. The city declined its right of first offer to purchase the property in January, according to Bisnow.
Christian Lee and Sean Kelly from CBRE represented Clarion Partners. Jeremy Hakala, Clay Sidner and Brandon Shores with Newmark represented Black Lion in the transaction and will oversee leasing.
Black Lion entered the Miami market two years ago and has amassed a portfolio that now exceeds $250 million in South Florida alone. The firm brought well-known brands to Miami’s hospitality scene including Delilah at Brickell Bay Boardwalk, CATCH at the Continuum, Amara at Paraiso with Chef Michael Schwartz and Gekko by David Grutman.
One planned Miami Beach deal did not fare as well. In September, a joint venture between Black Lion and Massa Investment Group announced it was acquiring Lincoln Place, a 140,000-square-office building at 1601 Washington Ave. from Nightingale Properties for $82 million. But that transaction did not close as planned and Bisnow reported there is ongoing litigation between the joint venture and Nightingale Properties.
Luxe office competition
Other developers are also constructing luxury office buildings in Miami Beach, including SHVO which secured the approval of the Miami Beach Planning Board in September to build The Alton, a six-story luxury office property at 1656-1680 Alton Road.
Designed by Pritzker Laureate Lord Norman Foster and the team at Foster + Partners, in collaboration with architect Kobi Karp, the 203,722-square-foot project is slated to include 170,000 square feet of rentable office space, 17,000 square feet of ground-floor retail as well as five luxury residences. SHVO is developing two additional Class A office properties in Miami Beach, in collaboration with architects Peter Marino and Foster + Partners, including the revitalization of 407 Lincoln Road and One Soundscape Park.
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