CBRE Global Investors Fund Buys 11-Building Miami Office Park

By Keith Loria, Contributing Editor

Strategic Partners U.S., an affiliate of CBRE Global Investors, has acquired Airport Corporate Center, a 45-acre, 11-building office park, from Hines REIT Airport Corp Center LLC, for a reported $132.3 million.

“It really starts with the Miami market and what we see as the growth story there,” Vance Maddocks, Strategic Partners U.S.’s president, told Commercial Property Executive. “The local economy is very strong and we’re seeing a lot of jobs being created, and that translates into a demand for office space.”

Located at 7200-7665 Corporate Center Dr., the property sits immediately adjacent to Miami International Airport and a $600 million road construction/widening project is currently underway which will further improve access to the property upon completion in late 2014/early 2015.

Airport Corporate Center includes both mid-rise and single-story office buildings with both structured and surface parking. The property was 78.6 percent leased at the time of the sale and includes over 1 million square feet of rentable space.

According to Maddocks, the vacancy rate for office space in Miami has dropped dramatically over the last 24 months, setting the stage for strong demand.

“Beyond that, we’re buying the property at a very substantial discount from its long-term fundamental value in our view,” he said. “So the deal is a combination of interest in the market and interest in the asset.”

Within this fund series, this will be Strategic Partners’ first entry into the Miami office market, although it has acquired residential properties in South Florida before. The deal is consistent with the firm’s philosophy.

“This is a value program and we’re looking for good quality real estate in markets we think have significant upside potential in situations where we can add value,” Maddocks added. “This property is overall 80 percent leased and we believe we can come in, renovate the entire park with a very comprehensive renovation and repositioning and lease it in a market that is undergoing recovery.”

The renovations will include both exterior and interior upgrades, landscaping upgrades, and implementation of the firm’s signature 5-Star Worldwide service and amenity program, including the addition of conference centers and a fitness center.