Deutsche Bank Sells South Florida Office Complex for Little Gain
The German bank had purchased the asset for only $1 million a decade ago.
By Julia Echikson January 7, 2026 1:15 pm
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Deutsche Bank continues to sell South Florida office properties for little gain to a joint venture led by Lone Star Funds.
DWS Group, the German bank’s asset manager, and RREEF, its property trust, sold an office complex in Downtown Coral Gables for $119.6 million, just $1 million more than what it paid for the property more than a decade ago, property records show. Dallas-based private equity firm Lone Star Funds purchased the asset, alongside Square2 Capital and Highline Real Estate Capital.
Called the Alhambra, the 3-acre property includes two buildings, which occupy a full block at the junction of Giralda Avenue and Galiano Street. The larger building at 2 Alhambra Plaza rises 14 stories and spans 232,100 square feet, while the smaller, seven-story building at 95 Merrick Way spans 94,300 square feet. Both structures were built in 1988 and are now 87 percent leased, according to the buyers. Square2 Management will now manage the property.
Lone Star Funds assumed the seller’s loan from Rialto Capital Management, which the investment firm boosted by $40.2 million, bringing the financing’s total to $98.4 million, mortgage document shows. JLL‘s Hermen Rodriguez, Ike Ojala, Mathew McCormack, Blake Koletic and Hunter Smith represented the seller in the sale.
Deutsche Bank had purchased the 326,400-square-foot complex for $118.6 million in 2015.
The recent transaction comes just a year after the German bank sold two office towers in Downtown Fort Lauderdale for little to no gain, as companies rethink their office footprints following the COVID pandemic, when remote work jolted the real estate market.
The same joint venture led by Lone Star Funds purchased one of the Fort Lauderdale towers for $220 million, and Bradford Allen Investment Advisors purchased the other for $208 million.
Representatives for Deutsche Bank declined to comment.
Update: The story was update to include Square2 Capital and Highline Real Estate Capital as buyers.
Julia Echikson can be reached at jechikson@commercialobserver.com.
