MMG Equity Partners director of acquisitions Marcos Puente in Pinecrest. Courtesy Photo

Real estate investor MMG Equity Partners scooped up a shopping and office plaza in a busy south Miami-Dade County neighborhood for $16 million.

Pinecrest-based MMG bought the Centre at Cutler Bay from Cutler Center Holdings LLC on Oct. 24. The transaction breaks down to $126 per square foot.

The seller is affiliated with Coral Gables-based luxury real estate company Boschetti Realty Group LLC, according to deed and state corporate records.

The 127,072-square-foot Centre at Cutler is on the southeast corner of Marlin Road and Southwest 106th Avenue in unincorporated Miami-Dade west of Cutler Bay.

MMG Equity said this was a smart acquisition for the investment company because it offers high yields from the get-go and is well-located in a densely developed, thriving business corridor at 18901 SW 106th Ave. It's northeast of Florida's Turnpike and U.S. 1.

"The center will outperform long term as we are able to charge the lowest gross rents in the market and benefit from significant barriers to entry for comparable product," MMG director of acquisitions Marcos Puente said in a news release. "You couldn't build this property today for $180 per square foot all-in, exclusive of land costs, provide the level of finishings we offer and still turn a profit. This was a basis buy for us, and we're confident the asset will continue to meet the need for affordable, small bay office-retail rentals in the area."

Centre at Cutler Bay, built in 2009, was almost fully leased at 98.6% when the deal closed. The office and retail space ranges in size from 660 to 1,250 square feet, although there also are combined bays as big as 15,000 square feet.

Tenants include Early Learning Coalition, which promotes educational opportunities, and CareerSource South Florida, which connects South Floridians with job and training opportunities.

The property offers some upside potential with an outparcel on the 6.7-acre lot. MMG Equity said it's looking for a tenant to partner with the investment company on the outparcel.

MMG Equity Partners borrowed $11.2 million from BankUnited Inc. for the acquisition. This is a 10-year, fixed-rate loan.

The buyer has been growing its portfolio, buying a 6,916-square-foot retail-residential property at 5850 Sunset Drive in South Miami in September. The property has 4,700 square feet of ground-floor retail and eight studio residences on the second floor.

MMG Equity also was part of a four-way venture that bought 302,346-square-foot Homestead Pavilion in Homestead for $62.25 million in May. This was the seventh biggest retail deal in South Florida since October 2018.

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