Miami's Museum Tower Sells for $64.6 Million to Bridge Investment
A source close to the deal quoted the $64.6 million price, although Bridge Investment declined to confirm it.
October 15, 2019 at 03:05 PM
4 minute read
Bridge Investment Group LLC bought downtown Miami's Museum Tower for $64.6 million, according to a source familiar with the deal.
Bridge Investment, a real estate investment manager based in Salt Lake City, Utah, announced its purchase Friday but declined to confirm the price. A transaction deed wasn't posted in Miami-Dade County public records as of Tuesday.
Bridge Investment bought the 29-story Museum Tower from Gaedeke Group, a Dallas-based office real estate investment, leasing, management and construction company that owned the building for 24 years.
The 259,666-square-foot office tower is on the southeast corner of Flagler Street and Southwest Second Avenue at 150 W. Flagler St., steps from the Miami-Dade County civil courthouse and near the Miami-Dade County Government Center and the federal court complex.
The tower east of Interstate 95 also has easy access to mass transit. It's near the Government Center Metrorail and Metromover passenger stations and a short walk to Virgin Train USA's MiamiCentral station.
Museum Tower fronts Flagler, once downtown's main drag that fell on hard times but is poised for revival under a $24.4 million streetscape plan and redevelopment by Moishe Mana, who owns over 50 properties on or near Flagler Street.
The Miami City Commission on July 25 approved streetscape financing and designs to make the street curbless, line it with cobblestones and make it more pedestrian friendly.
Museum Tower, built in 1986, is noted for its floor-to-ceiling windows that create a reflective exterior.
Law firm Stearns Weaver Miller Weissler Alhadeff & Sitterson has its Miami office in the tower. Bank of America and AT&T are major tenants.
Bridge Investment plans to add $4.5 million in improvements, including restroom upgrades, an additional conference center and lobby, and new common area finishes. The renovations will be in addition to $3 million invested since 2016 to improve the heating, ventilation and air conditioning system, security, fire alarms, roof and gym. Elevator modernization work is ongoing.
CBRE Group Inc. capital markets vice chairman Christian Lee and executive vice president José Lobón in Miami represented the seller on the tower sale. The company had no comment on the transaction.
Kapp Morrison in Boca Raton served as closing counsel.
Bridge bought Museum Tower through its subsidiary Bridge Office Fund Manager.
"Bridge's proven strategy for creating next-generation workplaces will allow Museum Tower to emerge as a new talent hub that appeals to both startups and established legal firms and corporations given the proximity to courthouse and transit with the benefits of an urban location," Kelly Kuykendall, Bridge Investment director of asset management, said in a news release.
Bridge Investment could expect to see increased occupancy and rental rates based on its location and renovation works, said Stephen Rutchik, Colliers International executive managing director for office services in Miami.
"They are going to see better performance for the asset and a better occupancy due to those components," he said.
Seller Gaedeke bought Museum Tower for $27.5 million in September 1995, according to the Miami-Dade property records.
In August, Bridge Investment bought the three-building Flagler Station near Doral and Offices at Doral Square in Doral for $123 million. Earlier this year Bridge also bought the 11-building Sawgrass Technology Park in Sunrise for $74.3 million.
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