Brick & Timber Collective Buy Cube Wynwood Office for $62M
Brick & Timber Collective closed on its latest Miami purchase, paying $62 million for the Cube Wynwood office building, according to the brokerage that arranged the sale.
Lndmrk Development’s Alex Karakhanian and Ben Mandell’s Tricera Capital bought the eight-story property at 230 NW 24th Street for $27 million from RedSky Capital last year when it faced financial hardship.
Completed in 2018, the 109,000-square-foot building is now fully leased. Tenants include Blockchain.com, which signed a 10-year lease last year, and coworking operator Regus, which occupies 23,600 square feet.
Earlier this year, hedge fund Schonfeld vacated its 11,000-square-foot office at the Cube for a permanent base at the nearby Dorsey, which the Related Group recently completed. Schonfeld’s former office has since been leased to Boston’s Northeastern University, which plans to operate a graduate program for working professionals in the fintech industry.
The deal includes a surface parking lot, located between NW 23rd Street and NW First Court, that could be developed into an eight-story property, according to the Cube’s offering memorandum.
The document also listed the property’s cap rate as 5.15 percent, last year’s total operating cost as $1.17 million, and the initial price guidance as $77 million. Dwnwtn Realty Advisors’ Devlin Marinoff and Tony Arellano represented both the seller and buyer.
JP Morgan provided a $36.2 million five-year fixed-rate loan with full-term interest only, according to Berkadia, whose Scott Wadler and Mike Basinski arranged the financing. Jesse Feldman, a partner at Brick & Timber, has yet to provide details to Commercial Observer.
The acquisition marks Brick & Timber’s third purchase in Wynwood. Earlier this year, the San Francisco-based investor bought the Wynwood Annex office building, across the street from the Cube for $49 million as well as a three-story office and retail building at 2724 and 2734 NW First Avenue for $9 million.
Julia Echikson can be reached at firstname.lastname@example.org.
Update: The story was amended to include details about the financing.