800 Brickell Office Tower Sells for $126 Million to New York Family Firm
This is the first venture in South Florida by Gatsby Enterprises, and more purchases are planned in the region's urban cores.
July 22, 2019 at 03:47 PM
4 minute read
A New York family firm made its first venture into Miami real estate with the $125.5 million buy of the 800 Brickell office tower and next-door parking garage.
Gatsby Enterprises bought the 15-story, 209,122-square-foot tower and adjacent nine-story, 550-space garage on 2 acres southwest of Brickell Avenue and Southeast Eighth Street. Friday's transaction is the latest in a string of notable office sales in the last two years.
Gatsby, led by principal and chairman Nader Shalom, bought the asset with Master Mind LLC, led by Babak Ebrahimzadeh, from an affiliate of Chicago-based real estate investment trust RREEF America REIT II Inc.
The sale price, which breaks down to $600 per square foot, is a 12.5 percent increase from the $111.6 million paid by RREEF America four years ago.
This is a long-term, value-add investment for Gatsby, which plans to pump about $5 million into upgrades in the hallways, restrooms, tenant space, lobby, courtyard and exterior, said Isaac Shalom, a managing member with the firm and son of Nader Shalom.
The buyer also plans to fill the vacant retail and office space. With 71% of the building leased, 61,000 square feet is open. Rent increases are expected, although Isaac Shalom didn't have an estimate of the increase.
“We plan on getting some really great retailers in there as well as increasing occupancy with the office tenants and attracting a wide variety of both financial firms, legal firms, TAMI,” Shalom said Monday, using the abbreviation for technology, advertising, media and information companies.
Current tenants include the law firms Jonathan H. Green & Associates and Krinzman Huss Lubetsky Feldman & Hotte, the headquarters of trading company Alpha Co., a BoConcept furniture showroom and Chile's consulate general.
The property has plenty of redevelopment potential as the 1981-built tower could be replaced with an up to 80-story tower with a maximum of 1.4 million square feet. A project of that size is allowed by right under the Miami 21 zoning code without City Commission approval.
Gatsby doesn't plan to pursue a new project until “very far” down the line, Shalom said.
“As we are a family firm, we like to look at a long-term horizon with our properties,” he said. “We also are looking for more opportunities in the South Florida market as well. We plan on this being the first of many acquisitions.”
Gatsby will look at commercial and residential assets in South Florida urban cores, Shalom said.
CBRE capital markets vice chairman Christian Lee and executive vice President José Lobón represented the seller. CBRE first vice president Amy Julian with the debt and structured finance division and senior financial analyst Andrew Chilgren also worked on the transaction.
Darryl R. Kaplan Co. president Darryl Kaplan in Hollywood represented Gatsby and Master Mind.
Gatsby's other holdings are in New York, including office towers at 56 W. 45th St. and 224 W. 35th St. as well as retail along Perry Street, according to its website. It also has apartment buildings in New York's Upper East Side, Upper West Side, Chelsea, East Village, Greenwich Village and Nolita neighborhoods.
Gatsby was attracted to the Miami building by its proximity to the Brickell City Centre mixed-use complex and The Shops at Mary Brickell Village.
The same sentiment was expressed by another new-to-market Brickell investor, New York-based global investor KKR & Co. Inc., which bought the Sabadell Financial Center last year. Projects like Brickell City Centre drive the coveted live-work-play lifestyle making Brickell office towers a smart investment, KKR told the Daily Business Review.
KKR bought the 522,892-square-foot, 30-story Sabadell building in a joint venture with Orlando-based office real estate owner and operator Parkway Properties for $248.5 million in June 2018.
Another trophy property, Brickell City Tower, sold for $117 million last September.
Related stories:
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllHow Much Coverage Do You Really Have? Valuation and Loss Settlement Provisions in Commercial Property Policies
10 minute readThe Importance of 'Speaking Up' Regarding Lease Renewal Deadlines for Commercial Tenants and Landlords
6 minute readMeet the Attorneys—and Little Known Law—Behind $20M Miami Dispute
Trending Stories
- 1How Amy Harris Leverages Diversity to Give UMB Financial a Competitive Edge
- 2Pa. Judicial Nominee Advances While Trump Demands GOP Unity Against Biden Picks
- 3The Unraveling of Sean Combs: How Legislation from the #MeToo Movement Brought Diddy Down
- 4Publication of Information Regarding Client Matters
- 5The State of Cost Recovery — Post COVID
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250