KKR, Parkway Properties Buy 522 KSF Miami Office Tower
The joint venture partners purchased the 30-story building in the city's central business district from PGIM Real Estate, which had owned the property since 2013.
By Barbra Murray
Sabadell Financial Center
The 522,000-square-foot office tower at 1111 Brickell Ave. in Miami’s vibrant Brickell submarket has changed hands. In a joint venture, affiliates of KKR and Parkway Property Investments purchased the Class A building from PGIM Real Estate.
Also known as Sabadell Financial Center, 1111 Brickell made its debut in the city’s central business district in 2000 as part of a mixed-use development that includes a JW Marriott hotel. In addition to premier office accommodations, the 30-story tower features 8,000 square feet of ground-level retail offerings and 18,000 square feet of green space. The property is home to a host of financial businesses, Banco Sabadell among them, as well as tenants from a variety of other sectors, including cosmetics giant Revlon, communications company Newlink and commercial real estate services firm Newmark Knight Frank.
KKR and Parkway acquired 1111 Brickell with the assistance of financing originated by Square Mile Capital Management. The parties involved are keeping mum on the purchase price of the building, which last traded in 2013 when PGIM, then Prudential Real Estate Investors, picked up the asset for $185 million. The new ownership plans to submit 1111 Brickell to a sweeping renovation that will reposition the property as a cutting-edge destination with a focus on hospitality, community and wellness.
Buying and selling in Miami
Investors are keen on office assets in Miami and owners are keen to sell them. “Investors (are) increasingly ready to cash out. A long-running economic cycle and limited expectations for substantial price growth have motivated more investors to sell and capitalize on Miami’s swift appreciation over the past five years,” according to a first-quarter 2018 report by real estate investment services firm Marcus & Millichap.
Recent Miami office transactions in the CBD include Crocker Partners’ sale of the 450,000-square-foot SunTrust International Center to PCCP for $127 million. And in a head-turning deal, KBS Realty Advisors sold 555 Washington, a 67,000-square-foot mixed-use property, to East End Capital and GreekOak Real Estate for $38 million, or roughly $590 per square-foot.
Image via Google Street View
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