noticias
Office building on Brickell Avenue sold for $443 million.
Sep 17, 2024
Nuveen Real Estate sold the 701 Brickell office building in Miami for $443 million, the second highest price ever paid for an office building in Florida.
The office building, spanning 63,641 square meters, was purchased by a group led by Boca Raton-based Morning Calm Management, along with an undisclosed partner. Manny de Zarraga, Matt McCormack, Ike Ojala, Hermen Rodríguez, and Mike McDonald from JLL represented the seller in the transaction. The price was equivalent to $646 per square foot.
The building was last sold for $172 million in 2002, so it experienced a significant increase in value after a long-term investment. Although office values have decreased in much of the country, values have remained high in Brickell due to rising rental rates, as many companies have relocated to Miami's financial district.
According to a recent online listing, there are 7,085 square meters available for rent at 701 Brickell, priced between $140 and $170 per square foot.
The 33-story office tower was built on a 1.55-hectare site in 1986 but was recently renovated with $30 million in capital improvements by Nuveen. Amenities include a fitness center, a conference facility, a restaurant, and charging stations for electric cars.
JLL reported that the building has a 90.2% occupancy rate. Among its tenants are Bank of America, Holland & Knight, Point 27, Apollo, and Kaseya.
Mukang Cho, CEO of Morning Calm Management, stated that 701 Brickell is the premium office tower on Brickell Avenue due to its amenities and stunning views.
"Although we acquired 701 because we have a generally favorable view of the office market in Miami as a whole, our conviction in the investment comes from our perception of the Brickell corridor and the specific area where 701 is located," Cho said. "The rental portfolio is comprised of leading national and global companies, and the supply and demand fundamentals also appear favorable in the short to medium term for the best buildings in Brickell."
This is Nuveen's second major office sale in Miami in the last 12 months, as it sold the 801 Brickell for $250 million in 2023.
The largest office sale in Florida's history is the Southeast Financial Center in Miami, for $540 million in 2016, although that building is nearly twice the size of 701 Brickell.