Northeast Capital Sells Miami Office Building

50Forty on 7th. Image courtesy of Avison Young

Valoro Capital Partners has acquired 50Forty on 7th, an 82,298-square-foot medical and professional office building in Miami, from Northeast Capital Group, according to CommercialEdge information. Avison Young‘s Florida Capital Markets Group represented the seller in the $18 million deal.

The same data provider shows Northeast Capital Group had purchased the building in January 2021 for $14.5 million. During its 14 months of ownership, the firm renovated the Airport submarket property according to a value-add improvement plan, bringing its occupancy rate to 93.3 percent, Avison Young Principal David Duckworth said in prepared remarks.

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Duckworth, alongside Principals John Crotty and Michael Fay, together with Vice President Brian de la Fé, assisted Northeast Capital Group. According to Crotty, the average asking rent in the Airport submarket has reached $39 per square foot in the first quarter of 2022, a new record for the area.

Recent CommercialEdge research indicates that Miami’s average vacancy rate contracted to 12.8 percent as of March, representing a 30-basis-point improvement month-over-month. The metro’s highest full-service equivalent listing rate, $150 per square foot, was recorded at 830 Brickell, the 640,000-square-foot development that will be Miami’s second-highest office tower upon its completion later this year.

A Miami medical and professional office building

Situated on roughly 1.8 acres at 5040 NW Seventh St., the nine-story building came online in 1986 near the Waterford office district. The property features 9,280-square-foot floorplates and a parking ratio of 3 spaces per 1,000 square feet.

More than half of the building’s tenants are medical office users, such as OMNI Neurological, Orthopedic & Spine Center and Butterfly Rehabilitation Center, followed by business services firms and government tenants. The property has maintained a 95 percent retention rate in the past three years, according to Avison Young.

The 50Forty building is some 7 miles west of downtown Miami, just south of the 250-acre Blue Lagoon Corporate Park, the Dolphin Expressway and Miami International Airport.