Integra Investments, partner buy Miami Beach office building near Lincoln Road

Seller Ivy Realty had paid $49M for the property and another office building in 2016

Aug.August 27, 2019 09:45 AM

Victor Ballestas and Eduardo Otaola with a rendering of 1674 Meridian Avenue

UPDATED, Aug. 27, 10:23 a.m.: Integra Investments and Constellation Group acquired an office building just off Lincoln Road for $10.1 million.

Ivy Realty sold the 31,270-square-foot office building at 1674 Meridian Avenue, property records show. The building includes 5,505 square feet of retail space, according to a release.

Ivy Realty, a commercial real estate investment firm based in Greenwich, Connecticut, paid nearly $49 million for the building in 2016. That included the office building at 1688 Meridian Avenue, which Ivy did not sell in this latest deal. Terranova Corporation had sold the buildings three years ago.

The new owners, a joint venture between Miami-based Integra and Constellation Group, plan to complete a multimillion-dollar renovation of the building, which includes a new lobby and common areas, improvements to the façade, floor-to-ceiling windows and a new roof. Banesco USA provided a $12.6 million loan for the acquisition and to fund the leasing costs, records show.

Miami-based Constellation Group is a real estate investment company founded by Eduardo and Carlos Otaola. Eduardo was previously a vice president at Integra.

Eduardo Otaola said the property sold vacant. The partnership plans to reconfigure the group floor retail space and lobby, bringing the total retail space to about 5,600 square feet. Office tenants have so far expressed interest in taking entire 7,000-square-foot floors. Leases will begin toward the end of 2020, he said. Otaola said two co-working operators have looked at the building.

The property is a block north of Lincoln Road, across the street from Macy’s.

HFF represented Ivy Realty.

Integra, led by Victor Ballestas, is partnering with Key International to build Boca Beach House, a boutique luxury condo in Boca Raton. About a year ago, Integra completed its $300 million Aventura ParkSquare mixed-use development, a 1.2-million-square-foot project at 2920 Northeast 207th Street.

In November, Ivy Realty closed on a $46.1 million refinancing for its Tower 101 office complex in downtown Fort Lauderdale.

Related Article

Dwyane Wade, Gabrielle Union and the North Bay Road home (Credit: Getty Images, Lux Hunters)

One last sale? Dwyane Wade lists Miami Beach estate for $33M

Kenneth and Karen Heithoff with 4911 Fisher Island Drive

Good bones? Radiologist sells Fisher Island Bayview condo for $8M

Aria Mehrabi and City National Bank

Pacific Star Capital wants to build Target-anchored retail building in North Beach

Carl Icahn is moving his firm from NY to Miami, Michael Shvo’s hotel plan could cost him $500M: Daily digest

Russell Galbut and the Fifth Hotel

Urbanica scores construction loan from Miami Beach’s biggest developer

Ayman Sabi and W South Beach (Credit: Linkedin, Marriott)

Former Roadhouse Grill CEO serves up W South Beach condo for $7M

Jeffrey Soffer taps ex-Turnberry CEO to lead resi division, PMG and Greybrook big loan for co-living tower: Daily digest

625 East Di Lido Drive and Colin Veitch

Bowing out: Former Norwegian Cruise Line CEO sells Venetian Islands home