The Real Deal Miami

Midtown Capital Partners buys Coral Gables office building

Deal was part of a 12-year sale-leaseback with One Spa World
By Amanda Rabines | August 07, 2018 11:30AM

770 South Dixie Highway and Marcus & Millichap’s Douglas Mandel

UPDATED, Aug. 7, 5:40 p.m.: Midtown Capital Partners just paid $14.75 million for a Coral Gables office building as part of a sale-leaseback deal.

Steiner Management Services, the parent company of One Spa World, which has its headquarters at the property, sold the 58,500-square-foot building at 770 South Dixie Highway to Midtown Capital Partners, a commercial investment firm led by Alejandro Velez and Alexander Saieh.

The buyer financed the 12-year sale leaseback an $8.1 million mortgage from Citibank, according to a press release. Douglas Mandel and Benjamin H. Silver of Marcus & Millichap represented the seller.

Mandel said the property, near the University of Miami, attracted 13 offers from investors looking for “strong lease guarantees” and land-banking developers. “UM isn’t going anywhere, so it’s a safe bet for a covered land play,” he added.

Steiner paid $7.5 million for the then-vacant building in 2012, according to property records, and later renovated the interiors, Velez said. It was built in 1990.

Midtown Capital Partner has been busy picking up office properties in South Florida. In December, the company paid $42 million for an office building in Pembroke Pines, and in August 2017, it purchased a portion of the Plantation Pointe Office Park for about $57 million.

Steiner was acquired by L Catterton in 2015 for roughly $925 million, including the assumption of debt. L Catterton is the result of a merger between Louis Vuitton Moet Hennessy, Groupe Arnault and Catterton Partners. The private equity firm is reportedly in talks to sell One Spa World for roughly $1 billion.

An earlier version of this story misspelled Benjamin Silver’s name from a press release.