LNR Corp. HQ sold to Parkway for $66 million

1601 Washington Ave., Miami Beach
1601 Washington Ave., Miami Beach

Parkway Properties signed a deal to buy Lincoln Place, an office and retail building on Washington Ave. in South Beach, for $66 million in debt and stock, the South Florida Business Journal reported.

The publicly traded, Orlando-based company said the building is fully leased by LNR Corp., the commercial-property arm spun off from U.S. homebuilder Lennar Corp. LNR is headquartered there in a deal that runs through June 2021. The building’s current owner, 16th Street Partners, is managed by LNR.

Parkway Properties said it would assume a $49.6 million mortgage with a 5.9 percent interest rate and maturity set for June 2016. It would also give the seller 900,000 shares of Parkway Properties. The deal is $472 per square foot and expected to close in the third quarter, the Journal said.

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“We are excited for the opportunity to expand into the South Florida area,” James Heistand, Parkway Properties’ president and chief executive, stated in a news release. “We believe this market is in the early stages of a recovery and has the potential to improve quickly given the diversity and vibrancy of its economy.”

Lincoln Place, a 140,000 square feet of office space, retail and a 534-space parking garage, was constructed in 2002. [South Florida Business Journal]Emily Schmall