The Brickell Bayview Centre office building has sold for $70 million, or about $245 per square foot for the 33-story building.
CRP-2 Brickell LLC, managed by Boston-based Colony Realty Partners sold the 80 SW Eighth St. building to 80 SW 8th Street LLC, which is managed by Miami-based Banyan Street Capital LLC. The transaction was recorded Thursday. The Banyan-managed company assumed a $47 million loan from ACRC Lender W LLC for the acquisition.
Colony paid $81.9 million for the 286,000 square foot building in May 2007.
Banyan Street is a private equity firm that acquires and manages properties directly or through joint ventures with institutional investors. The company is led by managing partner Rudy Touzet.
Banyan partnered with Boca Raton-based Crocker Partners LLC and Chilean fund Independencia S.A. in the acquisition, according to CBRE vice chairman Chris Lee, who along with vice chairman Charles Foschini and the rest of the firm’s Miami-based investment sales team, marketed the building for sale. They were assisted by Doug Okun of Continental Real Estate Cos.
Crocker is the largest office landlord in Miami’s central business district. The company owns Miami Center and SunTrust International Center in downtown Miami.
Brickell Bayview is 89 percent leased, according to CBRE Inc. Tenants include the Beacon Council, Chase Bank and Regus.
In a four-week marketing period, the building attracted interest from an array of investors, according to Lee. The westward growth of the Brickell area, led by CityCentre, is fueling real estate demand in the area.
“Five years ago, this property was on the fringe of the developed area,” Lee said. “We’ve seen five new buildings come down for new development over the last few months there. The whole neighborhood is being completely rejuvenated.”
While the purchase price is a $12 million discount from the 2007 price paid by Colony, Banyan Street is still spending “a pretty penny” on the building, according to Matthew Cheezem, vice president at Cresa South Florida LLC. Cheezem was not involved in the transaction.
“The building has always been on the outskirts of the Brickell market,” he said. Owners “really had to compete on price. It has been a value play” for tenants.
But CityCentre is changing that market perception.
“It has garnered a lot of attention because of what is happening with Swire” Properties Inc., the developer of the 2.9 million-square-foot project being built in phases. The first phase is scheduled for a 2015 completion.
“As movement continues west, the area where the building is continues to fill out,” Cheezem said. “It’s only natural this would increase in value, although it’s not there yet. People are making bets it will be.”
Last year, Colombian auto executive Carlos Mattos assembled a large portfolio of land near the CityCentre site. Mattos-led companies acquired at least 10 properties, including the home of Tobacco Road at 626 S. Miami Ave., for a combined $42.4 million.
Did you find this story informative? Have you considered sharing industry news and information on YOUR website to better serve YOUR clients and prospects?
CLICK HERE for more information on how CRE-sources can help you.
Get the latest industry news and information from CRE-sources delivered right to your email inbox! And we promise…no more than one email each morning.
And we promise…no more than one email each morning.