South Florida’s office market is cooling down after years of strong demand and low vacancy rates, but that doesn’t mean major deals have come to a halt.
1111 Brickell Avenue, also known as the Sabadell Financial Center, sold in June for $248.5 million, marking the priciest office sale of the month and year.
Two other office buildings sold for more than $20 million outside the city of Miami, and another two sold in Boca Raton’s Park at Broken Sound last month. Increasingly, tenants in South Florida, especially in Miami, are seeking Class A office space, driving down the demand for Class B offices, according to a recent report.
1111 Brickell – Kohlberg Kravis Roberts & Co. and Parkway Properties | $248.5M
PGIM Real Estate’s sale of 1111 Brickell Avenue in Miami to a partnership between Kohlberg Kravis Roberts & Co. and Parkway Properties for $248.5 million in June ended months long speculation over who would buy the iconic Brickell property.
The 30-story, 520,000-square-foot office tower sold for about $478 per square foot. Parkway and KKR financed the deal with a $217 million loan from Square Mile Capital Management. CBRE brokered the deal.
The tower was built with the adjacent JW Marriott Hotel in 2000. It was was renamed in 2010 when Spanish lender Banco Sabadell acquired Mellon United National Bank. Tenants include Telefonica USA, Hunton & Williams, Baker & McKenzie, Regus and Barclays.
Kendall Summit Office Park – Cofe Properties | $35M
Cofe Properties bought a six-building office park in Kendall for $34.75 million from TA Realty, the third-largest office sale last month.
The Miami-based commercial real estate firm paid about $200 per square foot for the 174,000-square-foot property known as the Kendall Summit Office Park at 11400 to 11440 North Kendall Drive. It secured a $26 million non-recourse loan from an unnamed lender to finance the purchase.
Cushman & Wakefield represented the seller, Boston-based TA Realty, and arranged the financing.
Kendall Summit Office Park was developed between 1984 and 1989 on 8.16 acres. Tenants include BB&T, Keller Williams, Quest Diagnostics, Wells Fargo, Claims & Risk Management Services, LLC and Greenberg Trial Lawyers.
900 Broken Sound – Investment group | $23.7M
A partnership between Mainstreet Capital Partners and an investment fund managed by the Davis Companies sold an office building at the Park of Broken Sound in Boca Raton.
900 Broken Sound LLC, a company that lists a Greenville, South Carolina address paid $23.7 million for the nearly 116,000-square-foot building at 900 Broken Sound Parkway.
The buyer, described in a press release as a group of local investors and a national investment fund, financed the deal with an $18.4 million loan from Wells Fargo. HFF represented the buyer and seller. NAI/Merin Hunter Codman is managing and leasing the building.
The sellers paid $19.75 million for the property in 2015. It was built in 1989.
Portions of the 700-acre office and industrial park, formerly known as the Arvida Park of Commerce, are being redeveloped into retail and multifamily projects, adding more than 1,000 new apartments to the Park at Broken Sound.
TurnAround King – Northern Trust Building | $13.5M
Reality TV’s the TurnAround King paid $13.5 million for an office building in Aventura.
Property records show Grant Cardone, who produces and stars in his TV show, paid about $540 per foot for the Northern Trust Bank building at 18901 Northeast 29th Avenue.
Guarapo Aventura LLC, led by real estate investor Matthew Lvoff, sold the 25,000-square-foot building to Cardone’s 10X HQ LLC. The buyer financed the deal with a $13.5 million mortgage from City National Bank.
The 1.5-acre property, near the Intracoastal Waterway, last sold in 2015 for $14.5 million, which means it traded at a loss of $1 million.
StateTrust Group – 1750 Clint Moore Road | $13M
An entity tied to Melvin Stier sold the 51,000-square-foot office building at 1750 Clint Moore Road to the StateTrust Group for $13 million, or about $260 per square foot.
The three-story building was developed in 1996 on a 5-acre lot within the Park of Broken Sound.
The buyer, Boca 1750 LLC, is led by executives at the Miami-based investment management firm StateTrust Group, an affiliate of StateTrust Wealth Management.
The buyer was represented by Marcy Javor of Signature One.
Records show the building last sold in 2013 for $12.7 million.