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More than half of the office building is leased to high-quality, credit-worthy tenants, according to Kroll Bond Rating Agency.
Aventura-based MG3 REIT bought the property 8400 Northwest 36th Street in Doral for $96 million last month from a fund managed by DRA Advisors. MG3 financed the acquisition with a $56 million CMBS loan from Citi Real Estate Funding.
Documents associated with the securitization provide an inside look at the property’s finances and rent roll.
As of June, the 241,000-square-foot property was 95 percent leased to 11 tenants, according to Moody’s, with average annual base rent of $33 per square foot.
The largest tenant, with a quarter of the total space, is on-board cruise retailer Starboard Holdings, a subsidiary of LVMH Moet Hennessy. Starboard has been at the Doral Concourse since 2004, and provides products like luxury bags, watches and jewelry to cruise lines.
The second largest tenant, Infinity Insurance Company, moved to the property in 2012 and expanded its space significantly in 2016 and 2019. Infinity is a subsidiary of the Kemper Corporation and provides auto, business and home insurance.
The Transportation Security Administration, a U.S. government agency within the Department of Homeland Security, is the third largest tenant and has been at the building since 2003.
The top three tenants are considered high quality and credit-worthy thanks to their parent organizations. Other notable tenants include law firm Greenberg Traurig, and Franchise World Headquarters, a company that operates and franchises subway restaurants.
The impact of the pandemic on the Doral Concourse has been limited. Marriott International Services did not pay rent in May and June 2020, for a total of more than $75,000, and has been repaying the deferred rent in monthly installments since January. All tenants have paid rent as of June, according to Moody’s.
The previous owner of the property, the DRA Advisors fund, acquired it as part of a $131.7 million portfolio in 2014 according to property records. The fund spent $2.4 million on capital improvements, with renovations of the lobby, common areas, cooling tower, and roof.
MG3 REIT, which is part of MG3 Group, has developed 2.3 million square feet of real estate since 2003, according to its website. Its 12-property Florida portfolio spans 825,000 square feet.