Avison Young completed the $3.2 million sale of South Dade Office Tower, a four-story, 49,504-square-foot office building situated on a 2.19-acre lot located at 10700 Caribbean Boulevard in Cutler Bay. On behalf of the seller, Pinnacle Investment Properties, Inc., Avison Young’s John K. Crotty, CCIM, Principal, and Michael T. Fay, Principal and Managing Director, Miami, successfully sold the property to CBD Executive Offices, LLC.
Part of a growing trend for investment dollars to be placed outside of Miami’s Central Business District, the asset traded in this transaction is located in a campus-style office park adjacent to Southland Mall within the growing and vibrant Urban Center District of Cutler Bay.
“We positioned this property as a value-add opportunity based on its premier location in proximity to high-trafficked retail, hotels, banking facilities, and government institutions,” said Crotty. “Several investors and owner-users were attracted to the potential ROI to be realized through an aggressive leasing and management program, and ultimately, we procured the most fitting buyer.”
While speculative construction has begun ramping up within some areas of Miami-Dade, according to Avison Young’s Mid-2016 Office Market Report, South Dade is seeing no new supply although the population continues to grow. In particular, Cutler Bay’s population is expected to grow by 22 percent by 2020. As such, the demand for office space among businesses continues to draw the attention of value-add investors.
“In Q2 2016, Miami’s total office investment sales were $572 million, more than double the Q1 2016 total of $275 million,” said Fay. “The South Dade Office Tower sale is indicative of the large amount of capital still available in the market looking for value-add opportunities where there is income as well as a real opportunity to create a strategic leasing and management plan to create appreciation over a three- to five-year hold.”
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