Following the pandemic’s impact, Florida’s office sector is seeing a surge in office investment. In the first quarter, sales activity was concentrated in South Florida, where companies recognized the distinct opportunities arising from the shifting commercial real estate landscape.
According to data provided by CommercialEdge, office investment sales in the first quarter of the year amounted to $985 million and totaled some 4.3 million square feet. This translates into a 24 percent increase from the $794 million recorded in the first quarter of 2020.
Investors focused on Class A assets, buildings occupied by prestigious tenants from the law and financial sectors, amenitized portfolios and value-add opportunities. The list below highlights the largest deals closed in Florida between January and March 2021, based on CommercialEdge data. The top five office deals amounted to $658.2 million, equal to 67 percent of the quarter’s total sales volume.
|Rank||Property Name||Sq. Ft.||Buyer||Seller||Total Sale Price (MM)|
|1||Phillips Point||420,290||Related Cos.||AEW Capital Management||$281.9|
|2||Two & Three MiamiCentral||333,438||EQ Office||Shorenstein||$230|
|3||The Offices at Sunset Place||514,000||Midtown Opportunities||Federal Realty Investment Trust||$65.5|
|4||Cypress Financial Center||198,528||Vision Properties||Steelbridge Capital||$44.2|
|5||Advance Tower||140,000||The Arden Cos.||USAA Real Estate||$36.7|
5. Advance Tower, South Miami
In January, The Ardent Cos. purchased Advance Tower, a 140,000-square-foot office building at 6262 Sunset Drive in South Miami. The nine-story asset traded for $36.7 million and was sold by USAA Real Estate, which purchased it in 2015 for $40 million from Advanced Development. Completed in 1986, the property serves as the headquarters of Interval International, a vacation exchange network.
4. Cypress Financial Center, Ft. Lauderdale
Also in early 2021, Vision Properties acquired Cypress Financial Center, a 198,528-square-foot office building in Ft. Lauderdale. The property traded for $44.2 million, with Benefit Street Partners providing $27.6 million in acquisition financing. The asset previously changed hands for $32.5 million in 2014, when a partnership between Steelbridge Capital, Square2 Capital and Apollo Global Management purchased it from Tricony.
The 11-story property was completed in 1988 and underwent renovations in 2015. Last March, Toronto-based Slate Office REIT entered into an agreement to purchase the asset for $45.5 million, but the deal fell through due to pandemic-generated uncertainty.
3. The Offices at Sunset Place, South Miami
Midtown Opportunities paid a joint venture between Federal Realty Investment Trust, Grass River Property Co. and Comras Co. $65.5 million for The Offices at Sunset Place, a 514,000-square-foot office and retail asset in South Miami.
Read More: Top 5 Office Transactions in Florida