City of Coral Gables, Florida, to Invest in Medical Office

The City of Coral Gables is eyeing a medical office for its portfolio of real estate near city hall.

City commissioners plan to discuss purchasing the Biltmore Medical Center at 475-495 Biltmore Way from Georgia-based ShareMD, at their meeting next Tuesday. The prospect comes as a multimillion-dollar renovation of the historic city hall is set to begin 500 feet away.

The proposed price for the medical office hasn’t been revealed.

Records show ShareMD bought the 55,000-square-foot building in 2019 for $14.6 million, or $265 per square foot, as part of a larger $33.15 million transaction that also included the Somi Center office property at 5966 South Dixie Highway in South Miami.

Listings show about 5,000 square feet is available for lease, with an asking rent of $45.50 per square foot, reflecting a 91 percent occupancy rate. Tenants include Asthma and Allergy Associates of Florida, Florida Center for Allergy & Asthma Care, Gastro Health, Katz Regenerative Foot and Ankle and Miami Ortho Spine. Blanca Commercial Real Estate is the leasing broker for the property.

The renovation of Coral Gables’ nearly 100-year-old City Hall at 405 Biltmore Way is expected to cost $25 million to $30 million. Construction will start this summer and conclude late next year.

The work to restore the Mediterranean Revival landmark has generated debate among preservationists over plans to replace, rather than restore, the building’s original wood-framed windows.

The city leased 10,500 square feet of office space for city staff at Florida East Coast Realty’s 2020 Ponce. The city manager, city attorney and city clerk moved into a 6,900-square-foot space on the 12th floor, and the finance department moved to a 3,600-square-foot space on the ground floor. Commission meetings are being held in the Public Safety Building on Salzedo Street.

ShareMD owns 1 million square feet of outpatient medical office assets across Florida and California, with South Florida serving as one of its core markets. The firm’s regional portfolio includes medical office properties in Kendall, Tamarac and Boynton Beach.

The historic Biltmore Hotel Miami Coral Gables, at 1200 Anastasia Avenue, is the most recognizable landmark, the Biltmore Way corridor has become a key office hub in the city, with a mix of medical practices, law firms, accounting offices and banks.