Just Closed: Record-Breaking Coconut Grove Office Sale

A prime Coconut Grove asset traded for $61 million, achieving a record-breaking price of more than $1,100 per square foot.

A joint venture between Miami-based real estate investment and development firm Torose Equities and Sabal Investment Holdings has sold 3480 Main Highway, a Class A office and retail property in Coconut Grove, to Azora Private.

The over 55,000-square-foot mixed-use asset sits in the heart of Coconut Grove’s Main Highway corridor, one of Miami’s most established and sought-after commercial districts. The disposition represents a strategic value-add success, with Torose delivering strong returns to investors through the repositioning of a complex distressed debt acquisition in just one year.

Torose Equities and Sabal acquired the asset through an off-market loan purchase in January 2025, taking title shortly thereafter via UCC foreclosure. The property was 100% occupied at acquisition by a diverse mix of office tenants as well as Amal and Level 6, two flourishing food and beverage concepts on the ground floor and rooftop.

“This transaction demonstrates our ability to identify off-market opportunities, execute quickly through complex situations, and create substantial value in a compressed timeframe,” said Scott Sherman, founder and principal of Torose Equities. “Coconut Grove’s office market continues to be one of the tightest in Miami, with Class A vacancy around 4%. We recognized the opportunity to acquire a well-located, fully-occupied asset below replacement cost and reposition legacy leases to current market rates. The strong investor demand for quality office assets in this submarket validated our thesis and allowed us to deliver exceptional returns to our investors.”

Through hands-on management, Torose executed new leases at rents well above existing in-place rents, capitalizing on the tight supply and strong tenant demand in Coconut Grove. The Main Highway corridor stands out for its walkable village atmosphere, proximity to high-end retail and dining, and limited new development.

The Coconut Grove office market continues to demonstrate strong fundamentals, with Class A vacancy remaining among the lowest in South Florida. While several boutique office developments are currently underway, the submarket remains heavily competitive due to sustained tenant demand, minimal turnover, and proximity to Downtown and Brickell.

“This sale is illustrative of strong investor demand for trophy quality office buildings in prime submarkets that are seeing sustained tenant demand. We look forward to following the continued success of this asset,” said Charles Alexander, a director at Sabal Investment Holdings.

 

“We remain bullish on Coconut Grove and continue to evaluate additional office opportunities in the market,” said Aaron Kay, director of acquisitions for Torose Equities. “This submarket’s unique characteristics and strong fundamentals align well with our value-add investment strategy.”

The transaction underscores Torose’s contrarian strategy of acquiring well-located office assets in high-performing submarkets during periods when broader market sentiment remains cautious, positioning the firm to capitalize on fundamentals that others overlook. This disposition follows Torose Equities’ recent acquisitions in downtown St. Petersburg and Miami Beach’s Lincoln Road, further demonstrating the firm’s track record of strategic value creation across high-growth markets in the Southeast.