A company with ties to Miami-based Banyan Street Capital bought a Doral office complex for $43 million, marking a discount from its last purchase price four years ago.
The real estate investment firm bought the twin office buildings near the intersection of Northwest 36th Street and Northwest 87th Avenue, along with some adjacent properties, according to records. The seven-story towers were built in 1985 and 1990.
The seller, a company tied to Miami-based Rialto Capital, had paid $48.8 million for the complex in 2016, according to records. Hines sold the property at that time, but has continued to manage it, according to Hines’ website. Tenants include Citibank and New York Life.
Last year, Banyan Street was a selling partner in one of the largest office deals in the region. It was a co-owner of the 141,000-square-foot Offices at Doral Square, which Bridge Investment Group purchased as part of a $123 million deal.
Rialto originated as a division of homebuilder Lennar Corp., according to its website. Lennar used Rialto after the recession to purchase distressed real estate assets. But as real estate prices have risen, buying opportunities became more limited.
In 2018, Lennar sold its Rialto Investment and Asset Management business to investment funds managed by Stone Point Capital for $340 million.
South Florida’s office market was in high-growth mode prior to coronavirus. But recent activity may show trouble down the road. A majority of the positive absorption was due to move-ins of co-working firms WeWork and Industrious, which are especially at risk in a post-pandemic world.
Source: The Real Deal