Bridge sells office complex in Sunrise for $49M –– a 34% discount

Bridge Investment Group sold the Sawgrass Technology Park in Sunrise for $49 million, marking a 34 percent discount from its purchase price five years ago.

North Miami-based IMC Equity Group and investor Alan Lipton bought the 515,000-square-foot office campus at 1601-1699 Northwest 136th Avenue from Salt Lake City, Utah-based Bridge, according to records and real estate database Vizzda. The buyers took out a $30.3 million loan from New York-based IDB Bank. 

IMC is led by CEO Yoram Izhak. Lipton’s LinkedIn shows he is president of the Golden Beach-based Lipton Foundation. 

The discounted sale raises doubts about South Florida’s office market’s immunity to woes experienced elsewhere in the U.S. The tri-county region became a magnet for out-of-state companies over the past four years, prompting a leasing frenzy and industry confidence in the market. But elevated interest rates, remote work and tighter bank lending are leaving their mark on South Florida offices, especially in suburban areas.

Sawgrass Technology Park consists of 11 two-story buildings completed in 1984 and 1985 on a 56.3-acre site, Vizzda records show.

The complex is about 65 percent leased, according to Carlos Segrera, chief investment officer at IMC Equity. The buyers are considering redeveloping the property, potentially with a mixed-use project, but still are studying their options, he said. 

Tenants include Power Home Remodeling, TurboDebt, telecommunications contractor SRT Group and BK Technologies. 

Bridge had paid $74.3 million for the Sawgrass Technology Park in 2019, taking out a $58.9 million loan from Capital One. 

The firm, led by CEO Jonathan Slager, has faced office woes in South Florida and elsewhere in the U.S. 

In December, Bridge sold the eight-story Offices at Doral Square building and adjacent three-story garage at 8600 Northwest 36th Street in Doral for $28.5 million. The deal marked a 23 percent discount off the firm’s purchase price in 2019. 

In Chicago, Newmark started accepting bids in May for the $74 million loan on Bridge’s 47-story office tower at 1 North LaSalle Street. The downtown Chicago building’s appraised value last year was $37 million, a 74 percent drop from 2018, while its occupancy in May fell to 56 percent. In San Francisco, a market where office vacancies are especially pronounced, Bridge sold the 15-story One Concord Center at 2300 Clayton Road in September for $40.5 million, a 42.6 percent discount from its purchase price in 2017. 

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Among other discounted office sales In South Florida, Starwood Capital Group, led by billionaire CEO Barry Sternlicht, sold a four-building office portfolio in Miramar in April for $45 million, or 45 percent less than the firm had paid in 2015. The properties are the Miramar Centre I and III buildings at 3401 and 3601 Southwest 160th Avenue, as well as the pair of Huntington Centre I and II buildings at 2901 and 2801 Southwest 149th Avenue. 

Also, New York-based Clarion Partners sold the ground lease for the six-story The Lincoln building at 1691 Michigan Avenue in Miami Beach for $62.5 million, marking a 42 percent discount from its purchase price in 2016. The Lincoln consists of 43,200 square feet of ground-floor retail and 118,700 square feet of offices.