A partnership between Pebb Capital, Wharton Properties, Lane Capital Partners, and Sabal Investment Holdings has acquired Design 41, a fully stabilized mixed-use office and retail property in Miami’s Design District, for $72.5 million. The joint venture purchased the seven-story asset at 112 NE 41st Street from the privately held Norton family, marking the second South Florida mixed-use acquisition completed together by Pebb Capital and Sabal.
Design 41 totals roughly 50,000 square feet and is 100% leased. The building includes approximately 40,000 square feet of Class A office space occupied by family and financial offices, as well as a new office for Foster + Partners. An upper floor is anchored by the Bosch Appliance Showroom. The remaining 10,000 square feet consists of ground-floor retail and showroom space leased to luxury brands including Missoni, Bond No. 9, and Breitling.
The property features open-air terraces, a 64-space covered parking garage, and prominent signage opportunities intended to enhance visibility within the district. The asset sits adjacent to Tesla and Maison Margiela and across from Gucci, Chanel and Prada, positioning it in what the buyers described as a supply-constrained luxury retail and boutique office corridor with continued demand from global brands.
The partnership said it plans to maintain the asset’s luxury positioning while further enhancing its appeal to retail tenants and boutique office users seeking proximity to the Design District’s concentration of high-end brands and pedestrian activity.
The acquisition was financed by 26North. Tony Arellano and Devlin Marinoff of DWNTWN Realty Advisors brokered the transaction.
KEY QUOTES
“The property represents a core, high-quality asset in one of the tightest and strongest retail and office markets in South Florida, with meaningful long-term lease and rent growth potential.”
“This investment allows us to capitalize on a clear supply-and-demand imbalance within a fully built-out market characterized by extremely low vacancy and limited office product. Space in Design 41, located in the heart of the Design District, is highly coveted and we expect to capitalize on this insatiable demand.”
Todd Rosenberg, Managing Partner, Pebb Capital
“We’re excited to continue building on our momentum in South Florida with Pebb Capital and expanding a portfolio of standout retail and office properties in some of the region’s most dynamic neighborhoods.”
“This acquisition reflects our focus on well-located assets with strong long-term demand, where thoughtful ownership can create lasting value.”
Tal Seder, Managing Director, Sabal Investment Holdings
