UPDATE, June 30, 11:40 a.m .: A joint venture paid $ 225 million for One Biscayne Tower, an office building in downtown Miami, The real deal has learned.
CP Group, which until recently was called Crocker Partners, with funds managed by Rialto Capital Management and Sabal Capital Partners, has purchased the skyscraper at 2 South Biscayne Boulevard, according to a press release.
The seller was Dow Chemical, with L&R Realty managing the property on behalf of Dow, the statement said. Dow Chemical is a multinational chemical producer based in Midland, Michigan and a subsidiary of Dow, according to its website.
The release did not include the price, but this was confirmed by two sources close to the deal.
Christian Lee and José Lobón of CBRE represented the seller in the case. Brian Gale and Andrew Trench of Cushman & Wakefield, who are part of the One Biscayne rental team, also helped with the sale.
The 38-story office tower with 691,980 rentable square feet is 65% leased, the statement said. It was built in 1973 over nearly an acre, according to property records.
CP Group, based in Boca Raton, is planning a series of renovations including the exterior facade, lobby, gym, lower basement, tenant floors and the existing cafe. In addition, it will redevelop part of the space into a conference center.
Brett Reese, senior vice president of the CP Group, said the building has historically been well rented, but had “fallout” during the pandemic. CP Group hopes to increase the occupancy rate after the renovations and capitalize on the company’s moves and expansions in Miami.
“It’s a class A office [building] downtown, so I would expect we would see a mix of financials, insurance, tech, and some real estate-type companies, ”Reese said.
CP Group has purchased and managed more than 157 properties totaling 48.6 million square feet, representing $ 6 billion in investments since 1986, according to its website. Angelo Bianco is Managing Partner and Chris Eachus is Partner.
Miami-based Rialto Capital, founded in 2007 by CEO Jeff Krasnoff, is a CMBS-listed investment and asset management firm and special service, according to its website. Its investment management arm oversees Rialto’s flagship Rialto Real Estate Fund series, as well as other specialist funds and segregated accounts. Investors have committed nearly $ 6 billion to Rialto funds and an additional $ 4.5 billion to private equity funds, partnerships and separate accounts, according to its website.
Sabal Capital Partners, based in Irvine, Calif., Founded in 2009 and led by Pat Jackson, owns several subsidiaries and affiliates of commercial real estate investment, lending and servicing, the statement said.
The purchase of the One Biscayne Tower follows several high-priced office purchases in South Florida. Monarch Alternative Capital agreed in May to buy 90% of Citigroup Center, another tower in downtown Miami, for $ 300 million.
CP Group has retained its stake in Citigroup Center and is also an ownership partner with PCCP in SunTrust International Center in downtown Miami.
In other large office transactions, the related companies bought two office towers in downtown West Palm Beach this year, along with half of the stake in a third party. Related bought the CityPlace Tower for $ 175 million in May and the Phillips Point Towers for $ 282 million in January. The group, led by Miami Dolphins owner Stephen Ross, also bought a 50 percent stake in Esperanté Corporate Center for an undisclosed price.