Downtown Miami office condos 50 percent sold

One Flagler, an office condo tower in downtown Miami, said it has sold half of its space after three months on the market, as demand for work sites continues to rise.

Newgard Development Group and Midgard Management, the building owner, entered into a joint venture to convert the building into office condos in late 2014.

The developer put $10 million in upgrades into the building, starting with the top-floor office units and working down to the lobby.

Renovations are roughly 80 percent complete, with upgrades to the lobby, restrooms, elevators, HVAC and electrical systems still underway, the developer said.

What sets One Flagler apart is that the units already have tenants: Buyers collect rent as soon as they invest, Newgard Vice President Juan Pedro San Martin told The Real Deal.

“The tenant is already in place,” San Martin told TRD. “You’re buying immediate income.”

Vacancy rates for office buildings in Miami have been dropping rapidly since the market’s recovery. A study by the Miami Downtown Development Authority showed 15 percent vacancy, opposed to the 24-percent peak in 2011.  A massive 750,000 square feet of office space has been absorbed since then.

Located at 14 Northeast First Avenue, One Flagler is on the corner of East Flagler Street in the middle of the downtown district. The building has 143,000 square feet, with units priced at $300 to $375 per square foot.

The 15-story building was built in 1952 by iconic modernist architect Morris Lapidus, known for his hotel designs like the Fontainebleau and Eden Roc in Miami Beach.

San Martin said One Flagler’s vintage exterior has been preserved, while its interior has been given a contemporary upgrade.

“We have an irreplaceable building in an incredible location,” San Martin told TRD. “Downtown is the hottest it’s ever been.”