Monarch and Tourmaline are buying the 28-story building at 801 Brickell Avenue in Miami from Nuveen Real Estate, according to sources, who put the price in the mid-$200 million range. The deal is expected to close late this week or early next week.
Completed in 1984, the building spans 695,000 square feet with roughly 415,000 square feet of that being offices, property records show. Nuveen, which is the investment arm of the Teachers Insurance and Annuity Association of America, or TIAA, had paid $80.3 million for the building in 2002.
801 Brickell is over 90 percent leased, sources said.
Tenants include investment firm Selvatra, Cassel Salpeter bank and Swiss Re AGroup. BNP Paribas Securities Corporation, a subsidiary of European bank BNP Paribas, signed a seven-year lease this year and is expected to open the 7,000-square-foot office in the fourth quarter. Last year, Nuveen moved its Southeast headquarters to the building.
The deal comes amid a slowdown of investment sales over the past year due to pricey financing driven by high interest rates. Firms still buying offices are either going in with enough equity, allowing them to bypass taking out a loan, or are seeking more favorable mortgage terms.
The Brickell Financial District has remained somewhat resilient to the woes plaguing office markets elsewhere in the U.S. The neighborhood became a magnet for the new-to-market firms that homed in on South Florida from late 2020 to mid-last year.
Financial firms that have leased in Brickell in recent years include Apollo Capital Management, Canadian asset manager CI Financial and private equity firm Thoma Bravo. Billionaire Ken Griffin also moved his Citadel and Citadel Securities’ headquarters to Brickell from Chicago.
The influx of tenants has pushed up Brickell rents to new highs, with some asking rates topping $100 per square foot. The 801 Brickell deal is partly a wager on rental growth at the tower, as new deals are signing for over $100 a foot, much more than than the rates for in-place leases, sources said.
Monarch and Tourmaline also have ownership stakes in the Citigroup Center at 201 South Biscayne Boulevard in downtown Miami. CP Group, previously called Crocker Partners, also is a part owner of the 34-story tower.
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Monarch Alternative Capital and Tourmaline Capital Partners are buying the 801 Brickell office tower in Miami for about $250 million, The Real Deal has learned. If the deal closes at this price, it would mark a record for a South Florida office investment this year. Monarch and Tourmaline are buying the 28-story building at 801
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Lead by real estate veteran Robert Khodadadian, Skyline Properties has been instrumental in many multi-million dollar commercial developments, including a $12 million contract for the White House Hotel, a 99-year ground lease of a four-story commercial site in Harlem, and a retail co-op on Prince St. for $50 million.
Robert Khodadadian has long had a simple philosophy about selling real estate. There are approximately a million buildings in the city, and the broker that gets to sell any one among the multitude that will hit the auctioning block at a given moment is, sometimes, simply the person who happens to pitch their services to the right seller.