RK Centers Pays $32.5 Million for North Miami's Arena Shops, a Fully Leased Total Wine Center on Biscayne

NORTH MIAMI — One of the busiest retail stretches in northeast Miami-Dade has a new owner, and it is a familiar one. RK Centers, the Sunny Isles Beach-based shopping center landlord led by Miami Heat minority owner Raanan Katz, has bought Arena Shops at 14750 Biscayne Blvd. for $32.5 million.

The seller was Edens, according to Miami Business Magazine, which cited property records and the analytics firm Vizzda. The deal closed on Oct. 22, according to the deal tracker Traded, and JLL Capital Markets, which represented the seller, announced the sale on Nov. 2.

What RK Centers Bought

Arena Shops is a 100% leased neighborhood center anchored by Total Wine & More. Other tenants include Chipotle Mexican Grill, T-Mobile and Tatore Miami, according to JLL.

The size depends on who is counting. JLL describes it as a 37,135-square-foot center. Property records cited by Miami Business Magazine put the building at about 44,660 square feet, which works out to roughly $728 per square foot at the sale price.

The plaza was built in 1993 on a 2.5-acre site and was last renovated in 2006. Edens bought it for $25 million in June 2012, so the sale represents a $7.5 million gain on paper over 14 years.

Location Is the Story

The center sits at the signalized corner of Biscayne Boulevard and NE 151st Street, a spot JLL describes as offering “exceptional visibility along one of South Florida’s primary retail corridors.”

Just across the street is SoLē Mia, the $4 billion mixed-use development that JLL calls “transformative” for the area. Aventura Mall, Florida International University’s Biscayne Bay Campus and Oleta River State Park are all nearby, and the center draws shoppers from Aventura, Sunny Isles Beach, Bal Harbour and North Miami.

“Opportunities to acquire an infill retail asset with this level of frontage, visibility and established tenancy along Biscayne Boulevard are exceptionally rare,” said JLL Senior Director Jorge Portela, who worked the deal with Executive Managing Director Danny Finkle and analyst Jacob Wise. “Arena Shops benefits from a necessity-based merchandising mix, a proven operating history and a location directly across from one of South Florida’s most significant mixed-use developments.”

A Tight Retail Market

The numbers behind the deal help explain why landlords keep paying up for strip centers in this part of the county. In the third quarter, northeast Miami-Dade had an average asking rent of $27.65 per square foot and total vacancy of 3.8%, according to Colliers data cited by Miami Business Magazine. The submarket has 233 retail buildings and 9.3 million square feet of inventory, one of the largest concentrations in the county.

JLL also pointed to “strong barriers to entry and continued residential growth throughout Northeast Miami-Dade County.” In plain terms, there is little land left to build new shopping centers along this corridor, while new condos and apartments keep adding customers.

RK Centers Keeps Buying

RK Centers owns dozens of retail properties across Miami-Dade and Broward, mostly in suburban neighborhoods, as well as centers in New England. The company says it typically closes acquisitions in less than 30 days using its own funds, without outside financing.

Arena Shops is the latest in a run of South Florida purchases. In April, RK Centers bought most of the Turtle Crossing shopping plaza in Coral Springs for $37.5 million, and last December it bought Riverbend Marketplace in Fort Lauderdale for $36 million, according to Miami Business Magazine. The company has also listed the 8.1-acre former Sears property at 3655 SW 22nd St. in Miami for $100 million, a site approved under the Live Local Act for 1,050 homes and 50,000 square feet of retail.

Edens, for its part, still holds a meaningful South Florida footprint, including Fifth & Alton in Miami Beach, Hialeah Mercado and Biscayne Commons in North Miami Beach.

What It Means for Small Businesses

For local retailers and franchise owners, the deal is another sign that well-located, necessity-based centers along Biscayne remain in high demand. Low vacancy gives landlords pricing power, so tenants looking for space in northeast Miami-Dade should expect competition and plan lease negotiations early.

For investors, Arena Shops is a reminder that the steady end of retail, with a wine superstore, a fast-casual restaurant and a phone store, keeps finding buyers, especially when it sits across the street from a growing neighborhood.