Ivy Realty Acquires $68M Miami Office Portfolio
- May 20, 2016
Miami–Ivy Realty, a Greenwich, Connecticut-based real estate investment, development and management company, acquired a five-building office portfolio in Miami’s Waterford at Blue Lagoon Corporate Business Park for $68.25 million, or $190.92 per square foot.
Cushman & Wakefield arranged $50.5 million in financing for Ivy Realty’s acquisition. The firm’s Equity, Debt & Structured Finance team formed of Senior Director Jason Hochman from the company’s Miami office, along with Senior Managing Director Michael Ryan and Managing Director Brian Linnihan from the Atlanta office, assisted Ivy Realty in securing the financing. The loan includes funds for Ivy Realty’s capital improvement plans and future leasing costs to stabilize the buildings. The non-recourse loan was provided by CIBC World Markets.
Cush & Wake’s brokerage team comprised of Executive Directors Mike Davis and Scott O’Donnell, Senior Directors Michael Lerner, Rick Brugge and Dominic Montazemi as well as Director Miguel Alcivar also represented the seller, a fund managed by DRA Advisors LLC.
The office buildings, built between 1982 and 1988, total 357,466 square feet and are located at 5757, 5775, 5805, 6101 and 6161 Blue Lagoon Drive respectively. The buildings range in size from 88,835 square feet to 60,338 square feet, each with a four-story, mid-rise profile. The properties offer highly efficient floor plates averaging 15,000 square feet for buildings 5757, 5775, and 5805, while buildings 6101 and 6160 feature 22,000 square feet floor plates. The portfolio was 79 percent occupied at the time of sale with nearly 60 percent of the tenancy consisting of national and regional companies.
Waterford at Blue Lagoon is a 250-acre master-planned, mixed-use business park, comprised of 20 office buildings and more than 2.8 million square feet of development, including four hotels, numerous restaurants, banking facilities, a Publix supermarket and a U.S. Post Office branch. The park is located near the Miami International Airport and directly across the Dolphin Expressway, providing convenient access for tenants commuting from Coral Gables, Brickell and downtown Miami.
“This portfolio offered an exceptional value-add opportunity in Miami’s premier mixed-use office park,” said Davis. “With modest common area upgrades, new ownership will be able to favorably position these assets to capitalize on the rapidly growing demand for high-quality space in the Waterford at Blue Lagoon micro-market.”
Photo courtesy of Ivy Realty.