Banyan Street and Oaktree Capital Sell Coral Gables Office Campus for $76M
By Julia Echikson March 13, 2024 1:23 pm
reprints
In another sign of Miami’s less-than-stellar investment sales market, Banyan Street Capital and Oaktree Capital Management sold a Coral Gables complex for nearly 25 percent less than the price they paid a decade ago.
Colonnade Capital paid $76 million for Douglas Entrance, a 948,568-square-foot office campus at 800 Douglas Road, just south of Tamiami Trail, property records show. The campus, which was constructed between 1924 and 1998, holds four buildings across 6.2 acres. The tallest tower is 31 stories.
Back in 2014, Miami-based Banyan Street Capital and Brookfield-owned Oaktree Capital Management purchased Douglas Entrance for $100.8 million, according to records.
The West Palm Beach-based Colonnade Capital assumed the seller’s loan from Wells Fargo, which has $57.8 million outstanding, per mortgage documents. The sellers had secured an $86.8 million acquisition loan in 2014. Following a $7 million renovation, the joint venture increased the debt to $100 million in 2017 and once again extended the loan in 2021, adding $8 million to the debt.
Representatives for Banyan Street Capital and Colonnade Capital did not immediately respond to requests for comment, while a spokesperson for Oaktree Capital Management declined to comment.
Douglas Entrance tenants include telecommunications service provider MastTec, which houses its headquarters at the office campus. The company’s owner, billionaire Jorge Mas, is a major backer of the Inter Miami professional soccer club, which is perhaps most famous for luring sports legend Lionel Messi to join the team in 2023.
Douglas Entrance isn’t the first office building in Coral Gables to sell under the purchase price in recent months.
In August, a joint venture among Lndmrk Development, Terranova and Torose Equities bought a 13-story office building at 255 Alhambra Circle for $54 million, $5 million less than its previous trade in 2006.
On the new development side, Related Companies is renegotiating its agreement with Swire Properties for its 80-story office tower in Brickell after failing to secure an anchor tenant, the Wall Street Journal recently reported.
Julia Echikson can be reached at jechikson@commercialobserver.com.
