The Real Deal Miami

Deutsche AWM pays $119M for Coral Gables office complex

The two office towers last sold for $72M in 2004

December 04, 2015 04:30PM

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The Alhambra in Coral Gables

The Alhambra in Coral Gables

The Alhambra, a Class A office complex in downtown Coral Gables, reportedly sold for $119 million.

A Deutsche Asset & Wealth Management fund bought the two towers on behalf of an overseas institutional investor. South Florida Equities REIT, an affiliate of USAA Real Estate Company, was the seller.

The Alhambra, at 2 Alhambra Plaza, includes a 14-story Alhambra Plaza and seven-story Alhambra West. Together, the properties span 326,415 square feet. The USAA affiliate paid $72.3 million for the property in 2004, according to Miami-Dade County records.

The South Florida Business Journal first reported the sales price. It has not yet hit county records.

Downtown Coral Gables is in midst of a transformation. The city has 40 projects, 2,700 residential units, 1.5 million square feet of office space and 740 hotel rooms in the pipeline, according to a city meeting in October.

Among those: The Mediterranean Village at Ponce Circle, billed as the largest development in the city’s history with more than 1 million square feet of hotel, condos and shopping on 6.7 acres; an Aloft Hotel being built on Le Jeune Road; 33 Alhambra, a proposed 16-story residential tower that would take up most of a city block; and Paseo de la Riviera, a $172 million mixed-use project that would run along South Dixie Highway.

In November, international food distribution company Quirch Foods announced it was moving its headquarters to a 30,000-square-foot office at 2701 South Le Jeune Road in downtown Coral Gables.

“The project offers an immediate income generation opportunity through the leasing of vacancy in the portfolio and long-term value via a targeted capital improvement program to reposition the asset,” Todd Henderson, head of real estate in the Americas for Deutsche AWM’s alternatives and real assets platform, said in a press release.

Deutsche AWM has more than $51.1 billion in assets under management, according to the release. – Katherine Kallergis