Valoro Capital scored a discount on an Edgewater office building previously owned by flexible workspace operator Expansive.
Valoro, led by Francisco Cantor and Alberto Chocron, paid $19 million for the 63,000-square-foot building at 2125 Biscayne Boulevard. The price amounts to $300 per square foot.
Chicago-based Expansive paid $21 million, or $332 per square foot, for the five-story building in 2019, according to a news release from Valoro, whose price represents a 10 percent discount from the previous trade.
Expansive invested $10 million into updating the building, including creating 130 private offices and updating amenities like the kitchen and tenant lounges. The seller has been offloading properties while maintaining its presence as a coworking operator.
The firm took a 47 percent loss on its initial investment in the sale-leaseback of a Chicago office building in January of last year, when it sold 405 West Superior Street for $5.3 million. That came after some distress that included a foreclosure in Houston and a deed in lieu of foreclosure in Chicago’s River North.
Miami-based Valoro plans to hold the building, which it describes as having “durable in-place cash flow and redevelopment upside,” while it seeks entitlements and strategizes the design for a redevelopment.
The property qualifies for construction of over 700 residential units under Florida’s Live Local Act, which allows developers to bypass local zoning if they reserve at least 40 percent of units for residents earning no more than 120 percent of the area median income.
Edgewater has transformed from a fast-growing local condo district into an international luxury residential enclave.
One example is Vertical Developments and Urban Network Capital Group’s Elle magazine-branded, 180-unit condo-hotel at 3618 Northeast Fifth Avenue.
SB Development and Hazelton Capital Group scored a $170 million construction loan in September to build the next phase of the Cove Residences at 456 Northeast 29th Street in Edgewater, a 40-story, 134-unit tower, with remaining units starting at $900,000.