Ascentris, a Denver-based real estate private equity firm, Highline Real Estate Capital, and SQUARE2 Capital, announced the acquisition of Westside Plaza I, II and III, a three-building, four-story, 372,639 square foot class A office campus located at 8400, 8300, and 8200 NW 33rd Street in Doral.
The property sold for approximately $70 million, according to sources familiar with the deal.
“We are pleased to be acquiring this best-in-class office property with Ascentris,” said Jay Caplin, principal with SQUARE2. “We have been specifically tracking the Doral office market with Ascentris for the past two years because of its increased residential density, the resulting scarcity of land for future office development, and its highly centralized and accessible location within Miami, which has resulted in the culmination of this latest joint venture acquisition.”
The LEED Silver certified buildings were constructed between 1996 and 2001 by Codina Partners and, since completion, have maintained an average occupancy of 90%. The Property’s strong historical occupancy can be attributed to its premier location within a half mile of CityPlace Doral, one of Doral’s most prominent retail destinations with 22 restaurants, a Fresh Market supermarket, and a luxury movie theatre. The Property also benefits from direct access to multiple arterial thoroughfares, including the Palmetto and Dolphin Expressways and the Florida Turnpike, allowing for convenient access to both employee and decision-maker housing throughout Miami-Dade County.
“Ascentris is focused on acquiring well-located, highly amenitized, office properties in the top performing suburban submarkets within specific growth corridors across the United States. The ability to create Class A amenities at the Property and re-lease the situational vacancies with the strong tailwinds of Miami’s in-migration and growth story is exciting,” said Tricia Noble, a Partner and Managing Director at Ascentris. “We are excited to partner with the Highline and SQUARE2 teams who together bring decades of South Florida investment knowledge and operational experience to the table.”
The property’s occupancy recently decreased to 73% following a recent move out, and occupancy will further decrease to 51% in 4Q-22 due to a tenant’s consolidation within Doral. These vacancies give Ascentris, Highline, and SQUARE2 the opportunity to implement a robust property renovation and re-lease the vacancy in one of Miami’s top performing office submarkets. Renovations will include upgrading the lobbies, common areas and restrooms, and the addition of a conference center, fitness facility, tenant lounge, and café. Exterior improvements will include new native landscaping, paint, the creation of outdoor seating and collaboration areas, as well as new monument signage.
“We are excited to bring a significantly improved office experience to the current and future tenants of this high-quality property,” added David Moret, President of Highline. “Benefiting from the highest net absorption for class A office space of any Miami submarket in the third-quarter of 2021, the Airport/Doral submarket is primed for further demand especially in property of the caliber we’ll unveil post capital improvements.”
CBRE Capital Markets’ Chris Lee, Jose Lobon, Andrew Chilgren, and Marcos Minaya represented the seller in the transaction. Acquisition financing was arranged by Amy Julien of CBRE Capital Markets. Steven Hurwitz and Doug Okun from JLL will be responsible for leasing and SQUARE2 Management will have an on-site property management team.
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