Top 10 building sales of 2014

Miami /
Dec.December 23, 2014 12:45 PM

Institutional real estate investors paid record breaking prices to acquire South Florida’s most sought after trophy buildings in the past year. In some cases, sellers made more than a 50 percent profit as buyers continued to pay premium rates per square foot of commercial property. Here are the top 10 building sales for 2014:

1. Six-building Lincoln Road Portfolio | $342M

In one of the largest deals in South Florida history, Terranova Corp. and Acadia Realty announced in August the sale of its six building portfolio on Lincoln Road to Morgan Stanley Real Estate Investing and affiliates of Terranova for $342 million. Terranova and Acadia made a 79 percent profit on the properties, which took three-and-a-half years to assemble at a cost of $191 million. The buildings involved in the deal include 600, 719-737, 740, 801-821, 826-838 Lincoln Road, and 723 North Lincoln Lane. Among the high-profile tenants are A/X Armani Jeans, Dylan’s Candy Store, Khong River House, Starbucks, Sushi Samba and 50 Eggs.

2. Las Olas Centre | $204M

In March, RAR2, an entity managed by RREEF America, the real estate investment business of Deutsche Bank’s Asset Management division, acquired the nearly 470,000-square-foot office complex at 350 and 450 East Las Olas Boulevard in Fort Lauderdale for $204 million. The seller, USAA Real Estate, paid $170 million in 2010 for Las Olas Centre, which counts Bank of America, JPMorgan Chase, Morgan Stanley and Wells Fargo Bank among its star tenants.

3. Shore Club | $175.3M

Ownership of the iconic boutique hotel at 1901 Collins Avenue in Miami Beach changed hands in the first week of January. New York-based Philips South Beach filed a special warranty deed transferring ownership of the 1901 Collins Avenue property to another New York company, Shore Club Property Owner, which is managed by New York-based HFZ Capital Group, according to state corporate records. The new owner assumed two mortgage notes totaling $175.3 million for the 309-room hotel constructed in 1938. HFZ also launched sales of 75 units as condos starting at $2 million during Art Basel this year, securing 13 reservations.

4. CityPlace Tower | $150M

Newport Beach, Calif.-based KBS Real Estate Investment Trust sold the trophy office tower at 525 Okeechobee Boulevard in West Palm Beach for $150 million in August. The buyer, CPT Equity LLC from Greenwich, Connecticut, paid a 19 percent premium over the $126.5 million that KBS paid for CityPlace Tower in 2011.

5. Courvoisier Centre | $146M

In April, Orlando-based Parkway Properties paid $146 million, or $422 per square foot, for the two Class A buildings at 501 Brickell Key Drive in Miami. The seller, New York-based Tishman Speyer, completed a $10 million renovation of the 346,000-square-foot, 84-percent leased complex last year.

6. Douglas Entrance | $100M

Banyan Street Capital of Miami, in a joint venture with Oaktree Capital Management of Los Angeles, acquired the five-building project from Pearlmark Real Estate Partners of Chicago in March for $100,750,000, or $216 per square foot. The property is a Class A, 467,325-square-foot landmark office campus in Coral Gables that was 82 percent leased at the time of the transaction.

7. ArtCenter South Florida | $88M

In another blockbuster deal for a Lincoln Road property, the nonprofit ArtCenter South Florida sold its headquarters building for $88 million in October. The 17,642-square-foot facility at 80 Lincoln Road was purchased by a joint venture between TriStar Capital and RFR Holdings, which has yet to announce their exact plans for redeveloping the site.

8. Dream South Beach | $70M

SB Hospitality, a firm managed by Russell W. Rosen, an attorney with Warshaw Burstein LLP in New York., purchased the 108-room Art Deco hotel from TBS Realty, a New York-based company managed by Rabinder Pal Singh, at a 226 percent premium over its last trade in 2006, when it was bought for $21.5 million. Located at 1111 and 1119 Collins Avenue in Miami Beach, Dream South Beach is subdivided into condominiums.

9. The Raleigh Hotel | $56.6M

In April, Elmira Miami, a company controlled by fashion mogul Tommy Hilfiger, paid $56.6 million for the 105-room hotel at 1775 Collins Avenue. The iconic building was previously owned by David Edelstein and Sam Nazarian’s Twice Around 1775 LLC, which paid $55 million for the property in late 2012. The deal included assigning a $35 million mortgage from the seller to the buyer.

10. 550 Biltmore Way | $50.2M

KPERS Realty Holding #39, managed by AEW Capital Management, paid a 40 percent premium in December to acquire the trophy office building in Coral Gables. PR 550 Biltmore Way, an affiliate of Prudential Real Estate Investors, sold the property anchored by UBS to KPERS for $50.2 million.


Related Articles

arrow_forward_ios
An aerial photo of Boca Lago Golf & Country Club (Google Maps, iStock)
Boca Lago Golf & Country Club owner wins approval to build a hotel on the property
Boca Lago Golf & Country Club owner wins approval to build a hotel on the property
Westime owner Jean Simonian and Washington Park Hotel. (Facebook via Westime and Washington Park Hotel)
Ladder Capital sells Witkoff’s Miami Beach hotel for $44M
Ladder Capital sells Witkoff’s Miami Beach hotel for $44M
From left: GLP Capital Partners’ Alan Yang, David Martin and Stephen Bittel with 7777 Northwest 41st Street in Doral (Google Maps; GLP; Terra)
Terra, Terranova sell 24-acre property in Doral for $55M
Terra, Terranova sell 24-acre property in Doral for $55M
Renderings of the One Brickell project with Jorge Pérez  and Jon Paul Pérez (Photos via Wikipedia Commons, Related)
Related to partner with Baccarat on major Brickell high-rise development
Related to partner with Baccarat on major Brickell high-rise development
Deepak Khosa and Aaron Kurlansky with 123 Ocean Avenue, Palm Beach Shores (Google Maps, iStock)
Deepak Khosa closes on distressed hotel on Singer Island, plans to convert to multifamily
Deepak Khosa closes on distressed hotel on Singer Island, plans to convert to multifamily
Ocean Bank CEO A. Alfonso Macedo and 4238 to 4242 Northwest Seventh Street (Google Maps)
Ocean Bank sells Miami dev site for $14M, buyer plans mixed-use project
Ocean Bank sells Miami dev site for $14M, buyer plans mixed-use project
Valerio Spinaci and 1506 Collins Avenue (Google Maps)
Casa Hotels buys boutique South Beach hotel for $8M
Casa Hotels buys boutique South Beach hotel for $8M
Ari Pearl, Jonathan Leifer and 9540 West Bay Harbor Drive. (Wyndam Hotels, PPG Development, L3C Capital Partners)
Ari Pearl, Jonathan Leifer acquire Bay Harbor Islands hotel out of foreclosure
Ari Pearl, Jonathan Leifer acquire Bay Harbor Islands hotel out of foreclosure
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...