Financial giant TIAA and its partner Allianz Real Estate of America just scored a pair of loans totaling $62 million from U.S. Bank, helping finance construction of two office projects in Miami’s Waterford at Blue Lagoon business park.
Both loans are secured by land that TIAA, one of South Florida’s most prolific institutional investors, and Allianz own in the park.
The first is a $24.75 million mortgage borrowed against five acres at 5707 Blue Lagoon Drive, where TIAA and Allianz are building a new built-to-suit headquarters for fast food chain Burger King.
Construction of the five-story, 150,000-square-foot building and its free-standing parking deck began in November, and developers are expecting a completion date of 2018. Burger King is moving from its existing 200,000-square-foot headquarters in a neighboring building. The fast food giant’s broker said in January that it would be cheaper for Burger King to downsize than stay in its current space.
Less than a mile to the west, the partnership’s second loan — this time for $37.21 million — is covered by the more than 12-acre lakefront site at 800 Waterford Way. There, TIAA and Allianz are working on a speculative 10-story office building.
The 250,000-square-foot project broke ground in February and is closing in on its planned mid-year 2017 completion. Asking rents at the building range from $24 per square foot to $28 per square foot, triple-net, according to a LoopNet listing for the property.
Both projects are being developed by the Hogan Group, which manages the business park on behalf of TIAA and Allianz.
These loans appear to be the first pieces of financing taken out by the partnership. Miami-Dade County’s rising rents and tightening vacancies have made developing offices a relatively attractive venture again, especially in markets like Aventura or near the Miami International Airport.
Allianz bought into the park last year by paying TIAA $375 million for a 49 percent stake in the company’s six Class A office buildings, totaling more than 1.4 million square feet.