Monarch paying $300M for downtown Miami office tower

Will take 90% stake in Citigroup Center, Crocker Partners keeping remaining interest

Miami /
May.May 12, 2021 03:30 PM
Clockwise from left: Citigroup Center at at 201 South Biscayne Boulevard, Monarch Alternative Capital CEO Michael Weinstock, Crocker Partners’ Angelo Bianco (Daniel Christensen/Wikipedia, Monarch, Crocker Partners)

Clockwise from left: Citigroup Center at at 201 South Biscayne Boulevard, Monarch Alternative Capital CEO Michael Weinstock, Crocker Partners’ Angelo Bianco (Daniel Christensen/Wikipedia, Monarch, Crocker Partners)

Monarch Alternative Capital agreed to acquire a 90 percent stake in a downtown Miami office tower for $300 million, The Real Deal has learned.

Monarch is taking over Townsend Group’s interest in Citigroup Center, a 34-story office building and adjacent nine-story parking garage at 201 South Biscayne Boulevard, according to sources familiar with the deal. Crocker Partners will keep the remaining ownership stake.

The deal, which is under contract, would mark the largest office sale in Miami since at least 2019.

A Crocker Partners spokesperson declined to comment. The Boca Raton-based real estate investor paid $262.5 million for the property in 2012.

Monarch, an investment firm with offices in New York and London, focuses on the debt of distressed and bankrupt companies, according to its website.

Citigroup Center’s office building spans 813,000 square feet and is about 70 percent leased to tenants with a roughly six-year weighted average lease term, according to marketing materials from Cushman & Wakefield.

A Cushman & Wakefield team led by Adam Spies and Mike McDonald is marketing the property for sale. They couldn’t be reached for comment.

Citigroup Center, which connects to the Intercontinental Miami Hotel, went through a $20 million renovation that was designed by architect Richard Meier and completed last year. Blanca Commercial Real Estate was tapped to handle leasing of the tower in September.

Duane Morris LLP inked a nearly $17 million lease for the penthouse office suite in 2018.

But the property was not immune to the effects of the pandemic. Court records show CP Miami Center LLC, the Crocker Partners affiliate that owns the building, filed three lawsuits against tenants alleging unpaid rent last year. One remains open.

Now investment sales of office properties have resumed in South Florida, encouraged by the migration of tech and finance firms to the Miami area.

In March, Blackstone Group paid about $230 million for the office buildings at Brightline’s MiamiCentral station near downtown.

Earlier this year, the Related Companies paid $282 million for the Phillips Point office towers in West Palm Beach.





    Related Articles

    arrow_forward_ios
    Related's Stephen Ross, Swire Properties' Kieran Bowers and renderings of One Brickell City Centre (LinkedIn, Getty, Swire Properties and Related Companies)
    Swire, Related score approval to widen planned Brickell office tower
    Swire, Related score approval to widen planned Brickell office tower
    Black Lion's Robert Rivani with One Thousand Museum
    Robert Rivani’s Black Lion snags One Thousand Museum restaurant space
    Robert Rivani’s Black Lion snags One Thousand Museum restaurant space
    Babak Ebrahimzadeh with The Contemporay
    Babak Ebrahimzadeh proposes West Palm office project
    Babak Ebrahimzadeh proposes West Palm office project
     Related Companies' Stephen Ross and a rendering of 515 Fern (Getty, Red Leaf NY)
    Stephen Ross bets on West Palm office development — again
    Stephen Ross bets on West Palm office development — again
    Sabadell Financial Center at 1111 Brickell Avenue in Miami, 110 Tower at 110 Southeast Sixth Street in Fort Lauderdale and The Gateway at Wynwood at 2916 North Miami Avenue in Miami with J.C. De Ona of Centennial Bank’s Southeast Florida division, Dominic Montazemi of Cushman & Wakefield, Chris Lee of CBRE, Shelby Rosenberg of R&B Realty Group and Todd Rosenberg of Pebb Capital (Google Maps, LinkedIn, Pebb Capital, R&B Realty Group, Cushman & Wakefield, CBRE)
    South Florida office sales falter, despite strong leasing
    South Florida office sales falter, despite strong leasing
    Moishe Mana, 48 East Flagler Street (left) and 76 East Flagler Street (right) (Photo Illustration by Steven Dilakian for The Real Deal with Getty Images and Google Maps)
    Moishe Mana’s downtown Miami tenants allege fraudulent eviction
    Moishe Mana’s downtown Miami tenants allege fraudulent eviction
    A rendering of the proposed office building and Michael Shvo (Kobi Karp, Shvo)
    Michael Shvo plans second Miami Beach office project
    Michael Shvo plans second Miami Beach office project
    From left: Belong co-founders Tyler Infelise, Ale Resnik, and Owen Savir (Belong, Getty Images, Google Maps)
    Lease roundup: Rentals manager Belong moves HQ to Brickell
    Lease roundup: Rentals manager Belong moves HQ to Brickell
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...