Andrew Farkas’s Island Capital Group Buys Doral Office at Discount
Deal marks a 26% loss in value since 2017
By Julia Echikson September 27, 2024 12:02 pm
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Andrew Farkas, a longtime real estate mogul, is getting in the office game down south — and nabbing a discount along the way. Farkas’s New York-based investment firm, Island Capital Group, paid $71 million for an 11-story office building in Doral, Fla., property records show.
Called One Park Square, the 687,304-square-foot property sits by the southern end of the outdoor Doral City Center shopping center at 3470 NW 82nd Avenue. The property, which was completed in 2009, offers 281,785 square feet of rentable space and houses a six-story parking garage.
The sale marks a 26 percent loss in value since 2017, when the seller, TA Realty, purchased the property for $96.1 million, according to property records. Deutsche Bank (DB)’s asset manager DWS and the Los Angeles County Employees Retirement Association appear to have later purchased stakes in the property.
Island Capital Group assumed the seller’s $48.1 million mortgage that originated in 2018, according to mortgage documents. The loan, which was restated to $47.7 million, now counts Goldman Sachs as a lender and is scheduled to mature in 2029.
However, not all Miami-Dade County offices are struggling, despite the rise of work from home. Hedge fund Elliott Management is under contract to buy 701 Brickell office tower in Miami’s financial district for $450 million. If the deal closes, it would mark the largest office sale in the county this year.
A representative for Farkas declined to comment, while a spokesperson for TA Realty did not immediately respond to a request for comment.
Julia Echikson can be reached at jechikson@commercialobserver.com.
