South Florida’s top office deal this year was Spanish billionaire Amancio Ortega’s $274.4 million purchase of Brickell’s Sabadell Financial Center.
The sellers received a higher offer from a buyer who required a loan, but they went with Ortega’s all-cash offer, a source said. Cash deals are often preferred because they take out the uncertainty of closing that comes with financed purchases, experts said.
Distress was still part of the story for the tri-county office market this year, as high interest rates and remote work trends linger.
Of the 10 biggest office sales this year, one property traded out of bankruptcy, another out of foreclosure, a third through deeds-in-lieu of foreclosure, and two properties traded for minimal value gains from their previous prices.
Downtown West Palm Beach, which billionaire Steve Ross is recreating in his own image, is the one submarket that showed immunity to the slowdown. His Related Ross is the biggest office landlord in downtown West Palm, where he has quickly tenanted his top tier buildings at record lease rates partly by tapping his New York connections.
Here are South Florida’s top office deals for 2025.
All-cash fashion
Spain’s richest person, Amancio Ortega, bought the 30-story Sabadell Financial Center in Brickell for $274.4 million in cash.
Ortega’s Pontegadea family office, which invests dividends from Ortega’s retail empire in real estate, bought the 1 million-square-foot tower at 1111 Brickell Avenue in Miami in October. The deal broke down to roughly $274 per square foot.
Tenants include co-working firm Industrious, marketing firm Tibint, Kennedys Law, Law Offices of Wolf & Pravato and commercial real estate services firm Northmarq.
Sellers New York-based KKR and Orlando-based Parkway had paid $248.5 million for Sabadell Financial Center in 2018, marking that year’s top office deal. The tower was completed in 2000 as part of a larger mixed-use project that included the adjacent 296-key JW Marriott Miami.
Ortega, best known as the founder of Zara and Bershka, also owns Massimo Dutti, Stradivarius, and Pull and Bear through his Inditex holding company. His Sabadell purchase was part of Ortega’s global real estate shopping spree this year, likely a way for the billionaire to quickly reinvest his hefty Inditex payouts to avoid Spain’s high taxes.
Trio buys Bank of America Plaza at Las Olas City Centre
Lone Star Funds, through its real estate fund VII, Highline Real Estate Capital and Square2 Capital bought the 23-story Bank of America Plaza at Las Olas City Centre in downtown Fort Lauderdale for $221 million in February.
The 410,600-square-foot building at 401 East Las Olas Boulevard traded for $538 per square foot. Completed in 2003 on a full city block, Bank of America Plaza has averaged 94 percent occupancy over the years.
Dallas-based private equity firm Lone Star Funds is led by CEO Donald Quintin, Miami-based Highline is led by David Moret, and Coconut Grove-based Square2 is led by principals Jay Caplin and Michael Manno.
Seller Rreef Property Trust, the U.S. subsidiary of German asset manager DWS Group, paid $220 million for the building in 2016. This year’s sale was part of Rreef’s yearslong strategy to deweigh its portfolio from offices.
Firms divesting from offices amid the nationwide leasing and lending slowdown are more likely to part with their South Florida properties, market experts say.
Because the tri-county region’s market got a boost during a pandemic-era influx of companies and increases in rents, landlords can sell their South Florida buildings for at least breakeven values or small gains. Elsewhere in the U.S., they would likely sell at a loss, experts have said.
DWS sold another downtown Fort Lauderdale office property in the same week as the Bank of America Plaza deal.
Chicago firm buys Las Olas City Centre
DWS sold Las Olas City Centre I & II for $208 million in February.
Chicago-based Bradford Allen Investment Advisors, led by Jeffrey Bernstein and Laurence Elbaum, bought the 470,800-square-foot complex with an 18-story building at 350 East Las Olas, a 15-story building at 450 East Las Olas, a 1,344-space garage and retail space. The deal broke down to $438 per square foot.
The buildings were 76 percent leased at the time of the deal.
DWS bought Las Olas Centre in 2014 for $204 million, according to records.
Wynwood office gamble goes awry
New York-based R&B Realty lost its Wynwood office buildings in bankruptcy court.
San Diego-based Cire Equity acquired the $89.6 million credit bid in August for the 12-story Gateway at Wynwood, at 2916 North Miami Avenue, and an adjacent single-story bank building, at 2830 North Miami Avenue, from A10 Capital. The price for the 220,900-square-foot property breaks down to $408 a foot.
Cire is led by Joshua Volen and Trevor Smith.
After A10 Capital won a final judgment in its foreclosure case against R&B last year, R&B affiliates filed for bankruptcy, avoiding foreclosure auction. A10 Capital later won the bankruptcy auction for the properties when no other bids were submitted, though R&B was given a chance to refinance its $112.9 million loan on the building.
Aron Rosenberg’s R&B completed Gateway at Wynwood in 2021, just as the neighborhood gained an image as an office mecca amid the influx of out-of-state companies to South Florida.
Market boosters touted Wynwood’s newfound reputation as a magnet for tech firms, with some even rechristening the area “Silicon Valley South.” Yet, Wynwood’s fortunes turned, and data shows tech firms didn’t account for hefty office leasing. In the meantime, landlords got hit with higher interest rates.
Gateway at Wynwood took a financial hit when a cyber attack stole a $3 million-plus payment to the general contractor, R&B said in court filings. Later, its construction loans matured just as aggressive interest rate increases started. It obtained two loans from A10, making partial payments. A10 then sought foreclosure.
Coconut Grove buildings come full circle
Azora Private Solutions, a global investment manager that’s a joint venture between Miami-based Exan Capital and Madrid-based Advenir Azora, bought two office buildings in Miami’s Coconut Grove for $82 million, combined.
In September, Azora paid $301 per square foot for the seven-story building at 3225 Aviation Avenue and the four-story building at 3250 Mary Street. Azora is led by Juan José Zaragoza and Ignacio Gil-Casares.
The deal was a buyback for Exan Capital. In 2020, Exan Capital, which was founded by Zaragoza, sold the properties to Washington, D.C.-based Madison Marquette for a combined $47.4 million.
Tourmaline buys distressed Coral Gables offices
Tourmaline Capital Partners bought Columbus Center in Coral Gables for $76 million in March, a year after the complex’s debt woes began.
Bryn Mawr, Pennsylvania-based Tourmaline paid $290 per square foot for the 14-story building and eight-story building on a 2.5-acre site at 1 Alhambra Plaza. The complex spans nearly 262,000 square feet.
The previous owner, San Antonio, Texas-based Affinius Capital, defaulted on its $71.6 million loan last year, and it entered special servicing. Affinius had failed to renew an interest rate cap, or a hedge against increases of interest rates, for the floating-rate loan, according to Morningstar Credit. That constituted a default under the financing agreement with lender Värde Partners.
Minneapolis-based Värde filed for foreclosure against Affinius last year, alleging it defaulted on a $68.9 million loan and a total amount due of $77.4 million, including interest and late fees, according to the complaint.
Chris Neilson, the court-appointed receiver overseeing Columbus Center and its financials in the foreclosure suit, sold the building to Tourmaline, writing in a court filing that the deal “represents a reasonable and fair market value.”
Tourmaline, led by Brandon Huffman, bought the property free from liens or other financial obligations.
Ryder’s HQ trades at a discount
Ryder System’s Coral Gables headquarters traded this month for $70.4million, a 13 percent discount from its price over a decade ago.
Fort Worth, Texas-based Crescent Real Estate, led by John Goff and Conrad Suszynski, bought the 11-story, 205,400-square-foot Ryder Colonnade at 169 Coral Way for $331 a foot. Boston-based AEW Capital Management was the seller.
The building’s name was changed to include “Ryder,” after Miami-Dade County homegrown logistics giant Ryder System moved its headquarters there last year. Ryder was based previously in a northwest area of the county for roughly 20 years, and moved to a smaller space at Ryder Colonnade, citing the remote work shift.
Boston-based TA Associates Realty, through an affiliate, paid $81 million for the office building in 2013, records show. In 2015, AEW Capital took over the entity, meaning it likely purchased the entire ownership stake of the building, state corporate records show.
Hamilton’s struggling suburban offices play
Nashville-based Hamilton Development bought three office buildings in Miami-Dade County’s Flagler Station business campus, purchasing the seller’s $64 million loan on the properties in May.
Salt Lake City, Utah-based Bridge Investment Group sold the adjacent properties at 9675, 9725 and 10451 Northwest 117th Avenue in an unincorporated area of the county for $158 per square foot. After acquiring the Wells Fargo loan, Hamilton then took over the buildings through deeds-in-lieu of foreclosure.
The deed-in-lieu of foreclosure for the building at 9675 Northwest 117th Avenue was valued at $20.8 million, for the building at 9725 Northwest 117th Avenue was valued at $20.4 million and for the one for 10451 Northwest 117th Avenue at $21.1 million.
Bridge Investment paid a combined $85.8 million for the buildings in 2018, records show.
Hamilton was founded in 2023 by former executives at Irvine, California-based Panattoni Development. Hamilton is led by Whitfield and Hayne Hamilton.
The deal came amid struggles for South Florida’s suburban offices, even as top tier buildings in prime markets such as downtown West Palm Beach and Miami’s Brickell thrive with new-to-market tenant leases and record rents. Aging office campuses in suburban areas have felt the sting from remote work, making them prime targets for redevelopment.
The Flagler Station buildings, completed in 2006, 2007 and 2009, struggled with occupancy at the time of Hamilton’s purchase. Two of the buildings had an occupancy in the 40 percent.
Hamilton plans to replace the properties at 9725 Northwest and 10451 Northwest 117th Avenue with a two-building, 300,000-plus-square-foot industrial facility.
The building at 9675 Northwest 117th Avenue will remain, recently scoring a 42,000-square-foot lease by the University of Miami for its health care system’s offices.
Steve Ross can’t stop his West Palm investing
Billionaire Steve Ross –– who has at least 11 properties in downtown West Palm, including purchased, developed, under construction and planned –– added the One Clearlake building to his portfolio.
Last month, Ross’ West Palm-based Related Ross paid $55.4 million for the 18-story, 221,700-square-foot building at 250 South Australian Avenue and adjacent four-story, 669-space garage. The deal broke down to about $250 per square foot.
It was the second time One Clearlake traded this year. Seller Bradford Allen bought it for $45 million, marking a nearly 26 percent discount from its sale price four years ago.
The deal gives Ross 7.6 contiguous acres facing Clear Lake. Completed in 1987, One Clearlake sits on 2.9 acres. Ross also owns the adjacent two-story, 70,100-square-foot WPTV studio and office building at 1100 Banyan Boulevard, completed in 2000 on 4.7 acres.
Related Ross hasn’t shared redevelopment plans. Any potential replacement of the buildings would have to wait because the E.W. Scripps Company, WPTV’s parent, leased back its building for a term of at least two and a half years.
Ross ripple effect
Toronto-based family office Coco Group, led by Jenny Coco, bought the boutique 100-year-old Echo building at 205 Datura Street in downtown West Palm Beach for $45.7 million in May.
Boca Raton-based Morning Calm Management, led by Mukang Cho, sold the four-story, 71,700-square-foot building and attached 10-story, 257-space garage for $637 a square foot. Morning Calm renovated Echo in 2021.
Tenants include Stone Point Capital, Alta Rock Partners, Frost Point Capital, Beacon Ridge Capital Management and Bold Ocean, according to its website. Asking lease rates are $68 a foot, triple net.
West Palm Beach emerged as one of South Florida’s top office markets largely due to Ross’ hefty investment and development activity in the area.
Ross stepped back from New York-based Related Companies, which he founded over 50 years ago, to start and lead Related Ross last year. His buildings were among the first to reach a record lease rate of over $100 a foot, though asking rates have topped that in more recent years.
Source(s): TRD analysis of deals reported by TRD, Colliers, Cushman & Wakefield and Commercial Observer.
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