Black Lion’s $63M Acquisition: Miami Beach Mixed-Use Building

Robert Rivani’s Black Lion has made its boldest move yet in South Florida, securing its largest purchase amidst fierce competition in Miami Beach’s office market. The Miami-based commercial real estate investment firm acquired a Miami Beach mixed-use building for $62.5 million, representing a significant 42 percent discount from its previous sale seven years ago.

The acquisition entails the ground lease for The Lincoln, a six-story structure encompassing 43,166 square feet of ground-floor retail and 118,658 square feet of office space at 1691 Michigan Avenue. The city of Miami Beach, which owns the land beneath the building, waived its right to first purchase the low-rise structure in January, according to city records. Completed in 2003, The Lincoln was previously owned by an affiliate of New York-based Clarion Partners, which acquired the ground lease for $109.2 million in 2016.

Black Lion decided to target The Lincoln after aborting a purchase deal for another ground lease on a mixed-use office building. The firm withdrew from a $82 million contract for Lincoln Place at 1601 Washington Avenue, resulting in legal action from New York-based Nightingale, seeking to retain a $2 million deposit.

Eyeing a $50 million renovation for The Lincoln, Black Lion aims to revitalize its exterior and interior and rebrand it as The Rivani. The forthcoming transformation, designed by New York-based Rockwell Group and Miami-based Escala Forma Studio, promises to infuse five-star hotel amenities into the office space, including a concierge, spa, meditation room, and podcast studio. Additionally, plans include adding a Japanese restaurant and a speakeasy lounge.

Rivani envisions The Rivani as a departure from conventional office spaces, striving to create an environment that meets and exceeds contemporary expectations and fosters genuine desirability.

However, Black Lion faces stiff competition from industry giants in the Class A office segment. New York-based developer Michael Shvo recently gained approval for One Soundscape Park, a planned 62,500-square-foot office building near The Lincoln. Shvo also has two other mixed-use office and retail projects underway in South Beach. Similarly, Sumaida + Khurana, based in New York, announced plans for a second office project in Miami Beach’s South of Fifth neighborhood.

Sumaida + Khurana’s Fifth Miami Beach, their inaugural boutique office building in South Beach, secured a $47.3 million construction loan in December, signaling further dynamism in South Florida’s bustling office market.