The Carpet Creations building in Miami’s Design District has sold for $21.5 million. A 8,800 SF, two story building, built in 1954 and renovated in 2014, sits on a 5,000 SF lot.
The Sellers are Elizabeth and Neil Rosen, who owned and operated the carpet store for more than 40 years. The buyer is Harbor Group International, which has a large Real Estate owned portfolio with several properties in Florida.
If you do the math, the price comes to $2,443 per square feet, taking at conservative CAP of 6 % and considering ideal situation (100% occupied), the NNN rent should be $147.00 per square feet per year and the operating expenses should be around $49 in taxes plus insurance and maintenance.
The rent to the tenant should be in the neighborhood of $202.00 per square feet, this is for a 1,000 SF space, $16,800 per month. You have to have a heck of sales and profit to pay this rent.