Cain, OKO Group Land $630M CMBS Deal for 830 Brickell

Cain and OKO Group scored a $630 million commercial mortgage-backed securities (CMBS) package to refinance 830 Brickell, Miami’s trophy office tower.

Goldman Sachs and J.P. Morgan Chase originated the five-year, fixed-rate, interest-only debt, with KeyBank National Association serving as the servicer, according to Fitch Ratings. The transaction closed on Friday, according to a representative for 830 Brickell.

The new mortgage replaces a $565 million refinancing loan that Tyko Capital issued last year. The debt will also fund $90 million in deferred maintenance, tenant improvements and leasing commissions, plus $3.9 million in closing costs.

830 Brickell, which obtained $357 million in construction financing, was Miami’s first office tower built in more than a decade. Since its completion last year, the 57-story property has emerged as the city’s most coveted office building, landing high-profile tenants such as Citadel, Microsoft and Santander Bank. 

“Miami continues to be one of the top global destinations for businesses, and the strong demand we have witnessed at 830 Brickell is a direct reflection of that,” Jonathan Goldstein, CEO of Cain, and Vlad Doronin, founder, chairman and CEO of OKO Group, said in a joint statement.

The 57-story property is just over 95 percent occupied, with a weighted average lease term remaining of 9.2 years, per Fitch Ratings. 

Using an 8 percent cap rate, Fitch Ratings valued the 650,148-square-foot building at $519 million. The rating agency estimated the property would generate $41.5 million annually in net cash flow — about 27 percent less than the issuer’s estimate.

A team at Pillsbury Winthrop Shaw Pittman, led by Nellie Camerik, provided legal counsel to the 830 Brickell’s ownership, and a Newmark team, led by Adam Spies, brokered the financing.

Update: The story was updated to reflect that the CMBS deal has closed.

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