KBS Sells South Beach Asset for $38M

By Timea Papp

555 Washington

KBS Realty Advisors completed the disposition of a Class A mixed-use property totaling 67,020 square feet in Miami Beach, Fla. GreenOak Real Estate acquired the asset for $38 million. CBRE’s Capital Markets and Debt & Structured Finance teams arranged the transaction as well as financing with Mesa West Capital on behalf of the buyer/borrower.

Located at 555 Washington St., the property encompasses 45,959 square feet of office and 21,061 square feet of retail space, and features a 243-space parking garage. The three-story property was built in 2001 and underwent a series of renovations in 2015. Designed by Arquitectonica, 555 Washington’s appeal is accentuated by its signature illuminated elliptical glass corner with horizontal metal fins.

‘Main & Main’ location

Vice Chairman Christian Lee and Senior Vice President José Lobón oversaw the transactions on the sale effort, while Vice President Amy Julian facilitated the financing. The CBRE Capital Markets team also included Financial Analysts Marcos Minaya and Andrew Chilgren. CREC’s Steven Hurwitz, director of office leasing & partner, collaborated in the marketing of the property. According to Yardi Matrix, KBS purchased 555 Washington for $30 million in January 2007.

“This is truly a ‘Main & Main’ location, as Washington Avenue represents the primary north-south roadway on the east side of South Beach, and Fifth street is the primary entrance to South Beach from the mainland, via MacArthur Causeway,” Lee stated in prepared remarks. “The property is currently 61 percent leased, representing an exceptional value-add opportunity by the lease-up of 26,272 square feet (31 percent) of vacant space in a market where the competitive set vacancy is just 4 percent,” Lobón added.

In late 2017, CBRE brokered the sale of 9350 Financial Center, a Class A office building in Kendall, Fla. The firm’s debt team was also part of the deal.

Image courtesy of CBRE