September 2, 2014
The developer of a CVS Pharmacy store in Miami’s Little Havana neighborhood cashed out for a big profit shortly after the building was completed.
Christy D LLC, a Coral Gables-based company managed by Sergio Delgado, paid $6.24 million in April 2013 for a 1.8-acre site. It signed a 25-year lease with CVS and started construction of its 15,000-square-foot store in February.
The building was completed in July and CVS is fully operational, said Pointe Group Advisors broker Boris Kozolchyk, who represented the seller along with Pointe Group’s Grant Savage.
With the job still in progress, Christy D sold the property for $14.5 million to Miami Beach-based D&R Design District, which is led by Sam Herzberg. Wells Fargo Bank provided a $10.63 million mortgage. ICS Realty’s Arthur Shepard represented the buyer.
Herzberg is a fan of pharmacy properties, having recently acquired one in South Beach.
There’s a big demand for pharmacy properties because they have strong returns on their leases, Kozolchyk said.
“It was a good return on investment,” he said of the Little Havana deal. “That’s the reason they sold. Otherwise they would have held it.”
The Little Havana property starts at 2713 S.W. Eighth Street and runs up Southwest 27th Avenue to Southwest Seventh Street. Several buildings were torn down to make way for the CVS.