HFF closes USD220m sale of Miami Tower
Holliday Fenoglio Fowler (HFF) has closed the USD220 million sale of Miami Tower, a 47-storey, 631,672-square-foot, Class A core office tower in Miami’s central business district.
HFF marketed the property on behalf of the seller, LaSalle Investment Management’s LaSalle Income & Growth Fund V, to buyer, Sumitomo Corporation of Americas. LaSalle purchased the property December, 2010, in a transaction also arranged by HFF. During it’s ownership, LaSalle installed a new lighting system as part of more broad-based tower renovation, and repositioned and leased the tower to 92 per cent occupancy.
Designed by architect IM Pei, Miami Tower consists of 37 stories of office space situated above 10 stories of parking, a Metromover station and ground level retail space. The building is well known for its unique exterior lighting system and boasts a long-term and blue-chip diversified tenancy with firms including Carlton Fields, TotalBank, UBS Financial, Genovese Joblove, Ver Ploeg and the GSA.
The property’s Downtown location is steps away from Miami’s best restaurants, including Zuma, I’l Gabbiano, Komodo, Cirpriani, Wolfgang’s Steakhouse, Bistro Modero and Coya. The property is surrounded by numerous luxury hotels, including Epic, JW Marriott Marquis, Viceroy, Hyatt Regency and Intercontinental. Downtown Miami has seen significant luxury residential development in recent years, along with a full complement of amenities, including a Whole Foods market and 18-screen Silverspot Cinema.
The HFF investment sales team representing the seller included Manny de Zárraga, Hermen Rodriguez, Ike Ojala, Jorge Portela and Tracey Goo.
“Miami Tower is perfectly positioned to take advantage of the exciting renaissance of the Miami CBD, which has been ranked as top US metro for job growth in 2015 and sixth most important city in the world for ultra-high net worth individuals,” says Rodriguez.
Robert Obringer, vice president of Sumitomo Corporation of Americas Commercial Real Estate Unit, sees solid value in this latest acquisition. “We are excited to add Miami Tower to our portfolio of commercial properties here in the US,” he says. “As part of our constant management of assets, we are always looking for opportunities that will maximise return on investment, and this property offers a strong upside potential for in-place cash flow and the opportunity to increase value.”