DRA Advisors Sells Doral Concourse Office Complex to MG3 REIT for $96M

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MG3 REIT has purchased Doral Concourse, a 240,669-square-foot office complex in Doral, Fla., for $96 million from DRA Advisors, according to brokerage CBRE, which represented the seller.

Located at 8400 Northwest 36th Street, the six-story building sits adjacent to the mixed-use shopping center CityPlace Doral. The property carries a $54.8 million mortgage from Wells Fargo, property records show. 

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Doral Concourse is 95 percent leased and no leases are set to expire within the next two years, per CBRE. Its tenants include the Latin American division of fast-food chain Subway and the Marriott Hotel, said CBRE’s Gordon Messinger, the property’s leasing agent. 

Back in 2014, DRA Advisors purchased three office buildings, including Doral Concourse, and a strip mall for a combined $131 million, per property records. Between 2017 and 2019, it sold the two other office buildings and mall for $106.5 million. 

The sale comes as Miami’s office market is strengthening, thanks to high-profile, new-to-market tenants hunting for space. While vacancy remains at an eight-year high of 16.9 percent, net absorption is recovering, picking up 50,123 square feet between the first and second of 2021. 

Seeing the interest, landlords are keeping rates high. Asking rents rose for a fourth consecutive quarter to an average of $46 per square foot, up 2.6 percent from pre-pandemic levels. 

The portfolio of the seller, New York-based DRA Advisors, spans 554 properties in 35 states, totaling 2,110 acres, according to the company. The buyer, Aventura, Fla.-based MG3 REIT, specializes in the development of schools. Representatives for both companies did not immediately respond to requests for comment. 

CBRE’s Christian Lee, José Lobón, Amy Julian and Andrew Chilgren represented the seller. All, through a spokesperson, declined to comment.

Julia Echikson can be reached at jechikson@commercialobserver.com.