Paul Singer’s Elliott Investment Management is under contract to puvrchase the 701 Brickell office tower in Miami for about $450 million.
The deal marks the New York-based hedge fund’s expanding investments in South Florida.
Elliott is buying the 33-story tower at 701 Brickell Avenue in Miami from New York-based Nuveen Real Estate, according to a source. Nuveen, a subsidiary of Teachers Insurance and Annuity Association of America, put the tower on the market in April with a target price of over $500 million.
JLL has been marketing the property. The brokerage declined to comment. Elliott and Nuveen didn’t immediately return requests for comment.
Completed in 1985, 701 Brickell spans 687,000 square feet and was renovated in 2021, the property’s website shows. The building is more than 90 percent leased, with tenants including law firm Holland & Knight, IT and security management software company Kaseya, and Bank of America. Pura Vida has a restaurant at the tower.
TIAA bought 701 Brickell in 2002 for $172 million, according to records.
If Elliott purchases the tower for $450 million, the deal would break down to $657 per square foot of office space.
Bloomberg first reported the news that Elliott is nearing a deal to buy the tower. The Real Deal independently confirmed the information.
This year, Brickell landlords have been listing their properties at record asking prices. The neighborhood, known as Miami’s financial district, became a major recipient of out-of-state firms to South Florida during the pandemic. This pushed up office rents at prime new buildings to a new record of nearly $200 per square foot.
Aside from Nuveen, Aimco also listed its Brickell holdings this year. The Denver-based real estate investment trust is asking $650 million for its 4.3-acre assemblage consisting of the 32-story Brickell Bay Office Tower at 1001 Brickell Bay Drive, and the adjacent 31-story, 357-unit Yacht Club Apartments at 1111 Brickell Bay Drive. The site can be redeveloped with more than 3.1 million square feet across several supertalls.
Elliott, which Singer founded in 1977, managed about $69.7 billion in assets as of June 30, according to its website. Singer and Jonathan Pollock are co-CEOs.
The firm moved its headquarters to downtown West Palm Beach from New York during the influx of businesses to South Florida in recent years.
Elliott backs Tyko Capital, a private equity and credit investment management firm that’s issued hefty loans in South Florida this year. In July, Tyko provided a $565 million permanent loan on the 830 Brickell office tower that’s expected to be completed by year-end. The loan paid off developers OKO Group and Cain International’s $300 million construction loan for 830 Brickell.
This month, Tyko also provided $527 million in construction financing to Integra Investments and the Pérez family’s Related Group for the luxury St. Regis Residences, Miami, condo tower, also on tap in Brickell.