Tourmaline Buys Coral Gables Office Building Out of Foreclosure for $76M

Tourmaline Capital Partners is expanding its office portfolio in Miami-Dade County, snapping up a property in Coral Gables for $76 million out of foreclosure, property records show.

The 14-story complex, called Columbus Center, holds two buildings, one 14 stories and the other eight stories, at 1 Alhambra Plaza in the tony town’s downtown. The Bryn Mawr, Pa.-based investor secured a $71.6 million acquisition loan from Banesco USA. 

The property was 62 percent occupied, according to a Morningstar report published in July. Two years ago, the 473,214-square-foot complex, which dates to 1990, underwent an $11 million renovation. 

But it wasn’t enough to keep the two buildings in good health, at least on financial terms. On behalf of CMBS trust VM Finance 202-FL4 LLC, special servicer Trimont sued in October to foreclose on the property after then-owner Affinius Capital defaulted on a loan, which had $69 million outstanding. 

The San Antonio-based investor had taken out a $71.6 million mortgage in 2020 at an interest rate of 4.8 percent. As rates rose, Affinius refused to enter into an interest rate cap agreement, which sets a maximum interest rate on floating-rate loans. The proposed agreement would have required Affinius to pay $2.5 million, in addition to providing another $2.5 million as a deposit. 

All the while, Columbus Center’s new owner has become a major investor in South Florida offices, betting on high-profile properties. 

In 2023, Tourmaline Capital bought the 28-story 801 Brickell building for $250 million, in partnership with Monarch Alternative Capital. It also owns interests in Citigroup Center and 777 Brickell buildings in central Miami. 

A representative for Tourmaline Capital Partners could not be reached for comment.

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