The Real Deal Miami

Parkway Properties, KKR pay $250M for Sabadell Financial Center: sources

PGIM sold 30-story office tower at 1111 Brickell
By Katherine Kallergis | June 14, 2018 06:56PM

1111 Brickell Avenue

UPDATED, 11:45 a.m., June 26: A partnership between Parkway Properties and investment giant KKR just paid $248.5 million for the Sabadell Financial Center in Miami, sources told The Real Deal.

The seller was PGIM Real Estate, which bought the property in 2013 for $184.3 million, property records show. The deal marks one of the priciest office-building trades in Greater Downtown Miami since the Southeast Financial Center sold for $500 million in 2016.

The 30-story office tower at 1111 Brickell Avenue, which spans about 520,000 square feet, sold for about $478 per square foot. Parkway and KKR financed the deal with a mortgage from Square Mile Capital Management, according to a press release from CBRE, whose Christian Lee, José Lobón, Amy Julian and Andrew Chilgren worked on the deal.

The brokerage declined to comment on the price, but sources familiar with the transaction said it was $250 million. Property records show Parkway and KKR paid $248.5 million for the building and financed the purchase with a $217 million loan from Square Mile.

The tower was built with the adjacent JW Marriott Hotel in 2000. The building was renamed in 2010 when Spanish lender Banco Sabadell acquired Mellon United National Bank. The combined entity known as Sabadell United became one of South Florida’s largest banks with assets over $5 billion and was headquartered in the Brickell Avenue tower. Last July, the Miami-based bank was acquired by the parent company of Louisiana-based IberiaBank for about $1 billion. At the time, it was the largest acquisition of a South Florida bank in a decade.

The buyers plan to renovate the common areas, including the lobby and entrance, and the 10th floor amenity deck and gym, according to the release. Tenants include Telefonica USA, Hunton & Williams, Baker & McKenzie, Regus and Barclays.

Other recent notable office sales in Miami-Dade include the $155 million sale in April 2017 of 1221 Brickell, a 27-story office tower, to Rockpoint Group.