South Beach Mixed-Use
For Sale
Contact for pricing
901 Pennsylvania Ave, Miami Beach, FL 33139
Mixed-use property with apartments and retail in prime location.
Property Size7,387 SF
Lot Size0.17 Acres
Price / SF$467.04
Days on Market192
Property Features for 901 Pennsylvania Ave
General Information
Standard status
Active
Size
7,387 SF
Class
B
Lot size
0.17 Acres
Property subtype
Multifamily
Zoning
RO
Lease Type
Net
Investment Type
Value Add
Building Details
Year Built
1948
Buildings
1
Stories
2
Units
10
Tenancy
Multi
Listing Agency:
Gridline Properties
(305) 632-7195
Listed By:
Juan C. Sotolongo · License #FL 3302712
Source:
Crexi
Added: Feb 3
Changed: Aug 8
Last Checked: Aug 8 at 2:36PM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Gridline Properties
Investment Insights
Based on property information with market context.
Located in South Beach on a 7,500 square foot corner lot at Pennsylvania Avenue and 9th Street, this mixed-use property at 901 PENN features six apartments and four ground-floor retail/office units. The property benefits from visibility on Washington Avenue, which ensures strong tenant demand. Recent capital improvements include a new roof installed in 2023, exterior paint, and AC units. The property is positioned in a high-foot-traffic area and is surrounded by hotels, restaurants, shopping, and nightlife, providing exposure and walkability. The property offers multiple investment strategies, including retail repositioning, owner-user occupancy, or redevelopment potential. The building has a total size of 7,387 square feet and is an income-generating asset with strong rental income and scheduled increases.
Key Highlights
- Prime South Beach location on a 7,500 SF corner lot.
- Mixed‑use property with six apartments and four retail/office units.
- Stabilized, income‑generating asset with strong rental income and scheduled increases.
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$195,792
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
5.68%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$3,915,840
$3.9M
Cap Rate 7%
$2,797,029
$2.8M
Cap Rate 9%
$2,175,467
$2.2M
Market Conditions
NOI Build-Up for 7,387 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$336.8K $45.60/SF
− Vacancy
−$75.8K −$10.26/SF
EGI
$261.1K $35.34/SF
− OpEx
−$65.3K −$8.84/SF
NOI
$195.8K $26.51/SF
Area
Miami-Dade County, FL
Vacancy
22.50%
Lease Rate
$45.60 /SF/Yr
Expense Ratio
25.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$3,915,840
Cap Rate 7%
$2,797,029
Cap Rate 9%
$2,175,467
Alternative Uses
Best Use
Office B
$2.80M
$2.45M – $3.26M
NOI $195,792 @ 7.0% cap · market cap 5.68%
Second Best
Mixed Use
$1.82M
$1.59M – $2.12M
NOI $127,426 @ 7.0% cap · market cap 3.69%
Theoretical Best
Office A
$3.75M
$3.28M – $4.37M
NOI $262,342 @ 7.0% cap · market cap 7.60%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
5,811
Businesses Nearby
Explore this area
Business Placement
Demographics for 33139, FL
36,286
Population
30,166
Households
1.2
Avg Household Size
43
Median Age
53%
College-Educated
89%
High-School Grad
2.8 sq mi
ZIP Area
12,959
Density / Sq Mi
$63,368
Median Household Income
$48,608
Median Earnings
$1,745
Median Rent
$480,500
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Mixed-use property with apartments and retail in prime location.
Where is this mixed-use property located?
The property is located at 901 Pennsylvania Ave Miami Beach, FL.
What is the asking price?
The asking price for this property is $3,450,000.
What are key features of this property?
This property features: Prime South Beach location on a 7,500 SF corner lot.; Mixed‑use property with six apartments and four retail/office units.; Stabilized, income‑generating asset with strong rental income and scheduled increases.
