California investor searching for higher yield buys medical office building portfolio

Slon Capital founder Leonard Boord sold the buildings

Nov.November 04, 2019 01:30 PM
475 Biltmore Way, Somi Center with Douglas Mandel and Benjamin Silver

475 Biltmore Way, Somi Center with Douglas Mandel and Benjamin Silver

UPDATED, Nov. 4, 8:50 p.m.: A San Diego-based investor acquired two medical office buildings in South Miami and Coral Gables, in what a broker on the deal called an example of the rise in out-of-state buyers searching for higher yield in Florida.

ShareMD, a real estate investment company led by George Scopetta, paid $33.15 million for the 50,000-square-foot buildings at 5966 South Dixie Highway and 475 Biltmore Way. The buying entities were listed as Somi Center MOB LLC and 475 Biltmore MOB LLC. The buyer is managed by JDS Real Holdings of Encinitas, California.

Elliot LaBreche

Elliot LaBreche

The sellers were listed as Somi Center LLC and Altis 475 LLC. Benjamin H. Silver and Douglas K. Mandel of Marcus & Millichap represented the sellers, which are both managed by Ingrid Morales, Sylvia Cristina Morales and Leonard Boord. Boord is the founder of Slon Capital. Elliot LaBreche of Easton & Associates represented ShareMD.

The buyer, a medical office operator, plans to stabilize the buildings, increase rental rates and improve overall operations, according to Silver and Mandel. Easton & Associates will handle leasing for the new owner.

Tenants at Somi Center include co-working space operator Büro with 13,000 square feet. The 50,600-square-foot Class A mixed-use building is also leased to The Halal Guys and Walgreens. The building was completed in 2017 and includes a parking garage. It’s about 71 percent leased with rents in the mid $30s per square foot, triple net. It sold for $18.55 million.

The property at 475 Biltmore Way is a 50,000-square-foot medical office building. It was recently renovated and has retail space on the ground floor, according to the release. Gross medical office rents in the building are in the high $30s per square foot. The building is near Coral Gables City Hall and Miracle Mile. The building, built in 1960, is 83 percent occupied and traded for $14.6 million.

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