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

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

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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.