A Miami Beach office building traded for more than double its last sale price after snapping up financial tenants, Commercial Observer has learned.
A joint venture between Integra investments and Constellation group sold the five-story 1674 meridian building for $ 26.5 million Juan Jose Zaragoza, Founder and managing director of Exan Capital, confirmed all parties to CO.
The boutique building is one block from Lincoln Road, one of South Beach’s main shopping streets Apple, Nespresso, Zara and Sephora Shops. The 33,384 square foot building includes 5,505 square feet for retail on the ground floor.
This summer, two New York-based financial firms signed leases at 1674 Meridian. Melvin capital, from GameStop Notoriety, will occupy a 6,762 square foot turnkey office while GMF capital Occupied 2,437 square feet according to sellers.
Integra and Constellation bought the Miami Beach building for $ 10.1 million in 2019, according to real estate records, and spent millions of dollars renovating the building. They created ready-to-move offices, added features such as touchless elevators and upgraded the facade. (A company representative did not disclose the exact cost of the renovation.)
The sellers announced that the building was 55 percent rented. Other tenants are a New York management consultancy, Rosemawr managementwho signed for 2,104 square feet, and Created, Their office will cover 1,364 square meters.
Miami-based Integra Investments, managed by Victor Ballestas, has executed more than $ 2.3 billion in real estate developments, including those in the pipeline, since its inception in 2009, the company said. Also headquartered in Miami, Constellation Group, founded by Eduardo Otaola, specializes in value-add investments.
When high-profile companies relocated south and were looking for high-quality space, office prices remained among the top offers during the pandemic in the Miami area. Unlike other nearby boroughs like Downtown Miami, Miami Beach is a market with limited land and few lots available for development.
Miami Beach’s Class A offices have some of the highest asking rents in the county at an average of $ 59.22 per square foot and have one of the lowest vacancy rates at 11.2 percent, according to Brokerage JLL for the third quarter of 2021.
Julia Echikson can be reached at [email protected].