7270 N. Kendall Dr. “Downtown Dadeland” (Google Earth)
One of the earliest and most spectacular failures of the last real estate boom cycle appears to have come full circle following the purchase of a Kendall retail complex foreclosed in 2007.
An entity linked to Boca Raton-based Duncan Hillsley Capital has scooped up the 129,079 square foot shopping complex at 7270 North Kendall Drive for $39 million, public records show, in a transaction that closed July 31. The seller was New York-based bank Goldman Sachs and Co., which received the property in 2007 following a previous owner’s default on a $224 million loan. The current transaction prices the retail space at $302 per square foot.
Across the street from the much larger Dadeland Mall, the retail space is spread out across several buildings constructed between 2003 and 2006 as part of a mixed-use development baptized “Downtown Dadeland.” Goldman Sachs foreclosed on the entire seven-building center, which includes over 400 residential condos and an underground parking garage, in 2007.
The bank has been selling off pieces of Downtown Dadeland ever since, sometimes taking significant paper losses. In November 2009, Goldman sold 158 of the residential units for some $18 million, or $109 per square foot. That’s a significant haircut on the $250 to $300 per square foot it cost to build the property, according to experts interviewed at the time by Bloomberg News.
The current sale is closer to those price levels and actually a premium to other recent transactions nearby. Late last month, a different local real estate firm bought the Greenery Mall, a 240,674-square-foot commercial property that features both a shopping center and an office tower just a few blocks west on 7700 North Kendall Drive. That sale went through for $56 million, some $232 per square foot.
The purchaser in the current retail deal, Duncan Hillsley, owns retail and residential properties throughout Florida and Texas. In South Florida, the company owns significant retail space and over 800 residential units inside downtown Miami’s Vizcayne condo, located at 244 Biscayne Boulevard. The company also owns a 146-unit apartment complex in Doral.