Nuveen Sells Miami Trophy Tower for $443M
This deal marks the second-largest office transaction in Florida’s history.
Nuveen Real Estate has sold 701 Brickell, a 685,279-square-foot trophy office tower in Miami. Morning Calm Management and its partner acquired the Class AA asset for $443 million in an all-cash deal. JLL represented the seller and procured the buyer.
The deal marks the second-largest office transaction in Florida’s history. The largest was Ponte Gadea’s $540 million purchase of the Southeast Financial Center, a 1.2 million-square-foot trophy tower in Miami’s Central Business District. JLL brokered that 2016 transaction as well.
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According to Bloomberg, Nuveen tapped JLL for 701 Brickell’s sale in April. Back then, the brokerage firm expected the high-rise to fetch upward of $500 million. Just last month, the same source reported that Elliott Investment Management neared a deal to purchase the asset for $450 million.
A glimpse inside the trophy tower
Nuveen Real Estate—formerly TIAA Real Estate—acquired the 1986-built 701 Brickell in 2002. MetLife Real Estate Investment sold the asset for $172 million, CommercialEdge data shows. In 2016, the property became subject to a $184 million loan issued by Northwestern Mutual, set to mature in 2026.
In 2022, Nuveen wrapped up the office tower’s renovation efforts. The company earmarked $30 million in capital expenditures, while JLL and Origin Construction led the overhaul. As part of the revamp, the main lobby received a facelift and the crew installed a touchless entry system. Further additions included a new gym, tenant-only lounge and conference center, among other amenities.
The tower rises 33 stories and features floorplates of approximately 22,120 rentable square feet. In line with green building trends, 701 Brickell received LEED Gold, Wired Gold, Fitwel and Energy Star certifications. The tenant roster includes law firm Holland & Knight—which renewed its commitment to 121,032 square feet of office space last year—as well as Bank of America and BlackRock.
Located inside Miami’s financial district and neighboring the downtown area, the building is next to 801 Brickell, which Nuveen sold last year for $250 million to a joint venture between Monarch Alternative Capital and Tourmaline Capital Partners.
Nuveen Senior Director Charles Russo spearheaded the sale efforts. The JLL Capital Markets team representing the seller included Executive Managing Director Manny de Zarraga, Senior Director Matt McCormack, Managing Director Ike Ojala and Senior Managing Director Hermen Rodriguez. Senior Managing Director Mike McDonald provided the team with support at a national level.
Miami’s office assets outprice national averages
The office transaction volume in metro Miami clocked in at $543 million year-to-date as of August, according to a report by CommercialEdge. Assets changed hands at $348 per square foot, above the national average of $173 per square foot.
Meanwhile, the metro’s asking office rents grew by 11.1 percent over the year—overshadowing the national average of 2.7 percent—and landed at $32.78 per square foot, the same source shows. Magic City’s top listing was 701 Brickell at $140 per square foot.
Miami’s office vacancy rate increased by 80 basis points during the same period, climbing to 14.1 percent in August, However, the national rate spiked by 200 basis points year-over-year, settling at 19.4 percent that month.
The metro’s office inventory is slated to rise further as OKO Group and Cain International will bring online 830 Brickell, a 57-story, 638,355-square-foot Class A project in Miami’s financial district. In July, the duo secured a $565 million permanent loan originated by TYKO Capital to refinance previous debt. Completion is expected this quarter.
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