Dow Chemical Sells One Biscayne Tower in Miami for $225M
CP Group is trading one Downtown Miami office tower for another.
CP Group has formed a joint venture with funds managed by Rialto Capital Management and Sabal Capital Partners to buy the 38-story One Biscayne Tower for $225 million.
Dow Chemical, a subsidiary of Dow, sold the property, which was managed by L&R Realty on the multinational chemical company’s behalf.
The JV assumed an existing mortgage on the property, a $115 million loan that Dow Chemical received from lender John Hancock, according to Brett Reese, senior vice president of CP Group.
The 982,000-square-foot property, located at 2 South Biscayne Boulevard, last sold in 1995 for $87.3 million and is 65 percent leased. The Real Deal first reported the price of the sale.
The deal follows CP Group’s sale of a 90 percent stake in Citigroup Center to Monarch Alternative Capital for $300 million, Commercial Observer previously reported. Monarch plans to operate that property alongside CP Group and a third partner.
As for their new acquisition, the developer is betting on Miami transplants to occupy the space following renovations — especially those in the financial services, real estate and insurance sectors, said Reese, though he has seen an uptick in interested tech tenants as well.
“We’ve seen a migration into south Florida prior to COVID,” Reese told CO. “COVID has accelerated that migration what feels like tenfold. We’re seeing that in all industries.”
The tower is home to architecture firm Stantec, Suffolk Construction and several law firms.
CP Group, formerly Crocker Partners, plans to renovate the skyscraper’s lobby, gym, lower basement level and exterior facade, according to information from the company. It also plans to upgrade an existing cafe, Premo’s Deli, and add a conference center.
CBRE‘s Christian Lee, José Lobón, Amy Julian of CBRE’s debt and structured finance group, as well as Andrew Chilgren represented the seller. The property’s leasing team of Brian Gale, Andrew Trench and Ryan Holtzman from Cushman & Wakefield also assisted with the sale.
Lee, Lobón and Gale did not immediately respond to requests for comment.