A big-time New York developer puffed up the price on a head shop in Miami’s Wynwood neighborhood, plunking down $4 million for a building that houses the smoke shop as well as a gallery building next door. That’s more than twice the $1.55 million those properties sold for in May 2012.
The deal for 2701 NW Second Ave. and 187 NW 27th St. in the heart of Miami’s rapidly growing arts district gives real estate entrepreneur David Edelstein an 11,815-square-foot toehold on the northeastern corner of Northwest Second Avenue and 27th Street.
The corner is a prime location on Wynwood’s main drag, and Ocean Grown Glass Gallery, a high-end smoke shop on Second Avenue with blown glass pipes listed for thousands of dollars each, is a neighborhood landmark.
The site purchased by Edelstein contains the 3,577-square-foot Ocean Grown store and the 3,192-square-foot art gallery. The site faces a mixed-use development proposed by real estate investor Goldman Properties, which plans to build 55 residences northwest of the intersection.
Edelstein’s purchase adds to the extensive collection of Wynwood property he’s amassed over the past year.
A joint venture he’s involved in owns the western half of the block between Northwest 28th and 9th streets facing Third Avenue. That venture has announced plan for a mixed-use development. Companies related to Edelstein also own eight contiguous lots totaling 1.64 acres on Northwest 24th Street west of Miami Avenue and two warehouses on 0.78 of an acre on the northwest corner of Northwest 26th Street and Miami Avenue.
The New York developer also has retail holdings in Miami’s Design District and a 29th-floor pied-a-terre in Miami Beach’s Setai condominium.
The existence of several recently registered Florida limited liability companies under Edelstein’s name suggest he’s not done buying yet.
In Wynwood, two co-owners of Ocean Grown said they learned about their new landlord Monday after the sale closed. The entrepreneurs couldn’t say if they’d be able to stay in business at their current location—or if their 10-month-old store would be going up in smoke.