Iconic Miami Office Asset Hits the Market
- Jun 14, 2016
Miami—J.P. Morgan Asset Management – Global Real Assets is ready to let go of one of Miami’s most notable office towers. The asset manager has decided to put Southeast Financial Center—a nearly 1.3 million-square-foot premier property—on the market.
Perhaps JPMAM–GRA was offering a hint of its plans in an August 2015 report, noting, “The Fund’s investment in Southeast Financial Center experienced an increase in value due to market rent growth, leases that were executed in several office suites and the decrease in discount rate by 25 bps to 6.75 percent. Market conditions continue to improve in the South Florida office market as it has experienced strong leasing and investment sales momentum.”
Southeast Financial Center is an asset that the investment community won’t be able to ignore. Developed by Hines in 1984, the Skidmore, Owings & Merrill-designed tower boasts the distinction of being not just the largest office building in Florida but, at 55 stories, the tallest as well. The property, carrying the downtown address of 200 S. Biscayne Blvd., also features an attached annex structure encompassing a 43,000-square-foot banking hall, a 21,00-square-foot fitness center and more than 11,000 square feet of service retail.
Additionally, there’s nothing like a nearly full tenant roster to lure potential buyers, and Southeast Financial Center has that, too. With Don Cartwright, managing director at commercial real estate services firm JLL, having been at the leasing helm since 2009, the office destination has been able to maintain its trophy status even during the tough times; occupancy levels in the high 90 percent range have been commonplace at the building over the years.
JPMAM–GRA’s history with Southeast Financial Center dates back to 2007, when the asset manager acquired a 50 percent interest in the joint venture that owned the property, then known as Wachovia Financial Center, becoming co-owners with Macquarie Office Trust. The following year, JPMAM–GRA became sole owner with the acquisition of Macquarie’s 50 percent stake for $182.5 million, according to Macquarie documents.
Image courtesy of Hines