LNR Corp. HQ sold to Parkway for $66 million

May 07, 2013 11:00AM

1601 Washington Ave., Miami Beach

Parkway Properties signed a deal to buy Lincoln Place, an office and retail building on Washington Ave. in South Beach, for $66 million in debt and stock, the South Florida Business Journal reported.

The publicly traded, Orlando-based company said the building is fully leased by LNR Corp., the commercial-property arm spun off from U.S. homebuilder Lennar Corp. LNR is headquartered there in a deal that runs through June 2021. The building’s current owner, 16th Street Partners, is managed by LNR.

Parkway Properties said it would assume a $49.6 million mortgage with a 5.9 percent interest rate and maturity set for June 2016. It would also give the seller 900,000 shares of Parkway Properties. The deal is $472 per square foot and expected to close in the third quarter, the Journal said.

“We are excited for the opportunity to expand into the South Florida area,” James Heistand, Parkway Properties’ president and chief executive, stated in a news release. “We believe this market is in the early stages of a recovery and has the potential to improve quickly given the diversity and vibrancy of its economy.”

Lincoln Place, a 140,000 square feet of office space, retail and a 534-space parking garage, was constructed in 2002. [South Florida Business Journal]Emily Schmall