Crunch Fitness founderDoug Levine sells three Wynwood buildings for $24M

Crunch Fitness founder Doug Levine sold a trio of commercial buildings in Miami’s Wynwood for $23.5 million, roughly $6 million below his asking price, The Real Deal has learned. 

Wynwood 126 acquired the 0.7-acre portfolio that can be redeveloped into a mixed-use project with a hotel or multifamily component, according to Tony Arellano and Devlin Marinoff with Dwntwn Realty Advisors, both of whom represented the seller and the buyer.

“The market still seems to be moving, especially in neighborhoods like Wynwood where the fundamentals are good,” Arellano said. “From what we are seeing from institutional and out-of-state investors, is that Southeast Florida is their most desirable place.” 

Arellano and Marinoff declined to comment on the true identity of the buyer. The entity is managed by Eric Benaim, principal of New York-based Benaim X Partners, according to a press release. Benaim said he plans on retaining the existing buildings for the foreseeable future.

Levine, who leads Miami-based Big Move Properties and who also founded Frida Baby, a maker of decongestant tools for infants, paid a combined $5.9 million for the assemblage between 2013 and 2014, records show. The three buildings at 2320-2328 North Miami Avenue and 36-38 Northwest 24th Street were completed in 1928 and 1950. 

When Levine listed the site last year, his asking price was $30 million. The buildings are fully occupied by two office tenants, Z Capital and NR Ventures; restaurant and bar Back Door Monkey; and Caeli Smoke & Vape shop, an online offering states. Caeli’s lease expires next month, but it has an option for a five-year renewal. Leases for the other tenants are set to expire between next year and 2028, the offering shows. 

The properties are projected to generate an annual rental income of $1.6 million after expenses this year, which could potentially increase to $2.5 million annually if all the tenants renew their leases, according to the offering. 

However, the 0.7-acre site is approved for a possible mixed-use project between eight to 12 stories with either 108 to 162 apartments or 216 to 324 hotel rooms, the offering states. The new owner can achieve the maximum height and maximum density through public benefits bonuses. 

Since selling Crunch Fitness in 2001, Levine has been one of the most prolific commercial real estate investors in emerging neighborhoods like Wynwood and Miami’s Little River and Little Haiti. Last year, Levin acquired 3.3 acres in Little Haiti for $11 million where he plans to convert 50,000 square feet of warehouses into office, retail and food and beverage uses. 

In 2022, Levine branched out to Fort Lauderdale, paying $15 million for an office building. 

Correction: A previous version of this story had an incorrect price and entity name of the buyer.