Miami Beach Walgreens at 509 Collins Ave. in Miami Beach. Photo: Google

A Walgreens store at the high-traffic corner of Collins Avenue and Fifth Street in Miami Beach was bought by a New York real estate investment and development company for $33 million.

Allied Partners bought the property at 509 Collins Ave. on Aug. 29 from Miami Beach-based real estate investor Sam Herzberg, who owned it through affiliate D&R Design District LLC.

The two-story building is 22,875 square feet, meaning the purchase breaks down to $1,445 per square foot.

The building is occupied by Walgreens, which has a lease for over 14 years with built-in rate increases. It was constructed in 1995 on a 15,093-square-foot lot.

"This Walgreens is located on Fifth Street, which is the gateway to Miami Beach. The majority of tourists that visit Ocean Drive will end up passing by this property," Gabriel Britti, who was part of the team that brokered the deal, said in a news release.

Britti worked with Ricardo Esteves and Ronnie Issenberg, all investment specialists with Marcus & Millichap in Miami, to list the property on behalf of the seller and  secure the buyer.

D&R Design bought the property in June 2014 for $32 million. Herzberg, D&R Design's president, owns trophy assets in Miami Beach, including the 927 Lincoln Road building.

Commercial real estate remains a stable asset class, which has prompted investors to buy despite economic worries.

"The current equity market volatility, the lingering impact of potential trade wars and today's low interest rate environment have reiterated the stability of commercial real estate. As a result, we've seen an influx of additional capital enter into the sector," Esteves said by email.

Allied Partners owns over 30 properties with a market value of more than $3 billion, including the Citigroup Center office tower in Manhattan. Its other South Beach holdings include The Savoy Hotel at 425 Ocean Drive, east of the Walgreens store.