RREEF Sells Aging Coral Gables Office for $55M
An aging office building in Coral Gables, a wealthy Miami suburb, sold at a discount.
A joint venture among local investors and developers — Alex Karakhanian’s Lndmrk Development, Stephen Bittel’s Terranova Corporation and Scott Sherman’s Torose Equities — paid $54.4 million for a 13-story office building that was completed in 1972, property records show.
Located at 255 Alhambra Circle, a block west from Ponce de Leon, the 421,791-square-foot building includes 220,000 square feet of office space.
The seller — RREEF America REIT II, a fund managed by Deutsche Bank — had acquired the property for $59 million in 2006, netting a nearly $5 million loss from the recent sale. But the fund is sure to have earned income from leasing out the property during its 17 years of ownership.
The building is now 80 percent leased to tenants that include TD Bank, TD Ameritrade, Driftwood Acquisition and Kraft Food, according to a representative for Torose.
“It is rare to find an institutional-grade property like this strategically located in a high barrier to entry submarket with so much upside potential,” Sherman said in a statement. “This property is positioned to generate strong returns with stable in-place cash flow.”
The buyers took out a $50.5 million mortgage from Popular Bank, an unusually high loan-to-value ratio, given the Federal Reserves’ recent interest-rate hikes, which have rattled debt markets. The joint venture plans to add amenities to the property.
Representatives for Terranova and RREEF America did not immediately respond to requests for comment.
Julia Echikson can be reached at firstname.lastname@example.org.