Jennifer LeClaire | GlobeSt.com
The seller more than doubled its money in 11 years.
MIAMI—It’s the largest commercial real estate transaction in Coral Gables, FL so far this year. A joint venture between Greenstreet Partners just sold the 2121 Ponce office building to a member company of Zurich North America for $57.5 million. Greenstreet acquired the building for 27.1 million in 2005.
Zurich Alternative Asset Management, Zurich’s alternative investment adviser, worked with the buyer on the deal. The sale of the 164,848 square-foot office building marks the latest sign of mounting demand for high-performing South Florida office properties among institutional investors around the world. CREC and CBRE brokered the deal.
“Coral Gables has long been one of South Florida’s most desirable submarkets, and that position will only grow as office users prioritize locations that are walkable and in close proximity to public transit options,” CREC principal Steven Hurwitz, who manages leasing at the building in tandem with CREC’s Doug Okun, tells GlobeSt.com. “2121 Ponce has emerged as one of the neighborhood’s best addresses over the past decade, particularly among companies in the market for space priced slightly below the rates at newer buildings nearby.”
CREC and Greenstreet acquired 2121 Ponce in 2015. Since then, the office asset has seen significant renovations of all common areas. A leasing and marketing program repositioned the building as a boutique, service-oriented option for Coral Gables office users. CREC has worked as the exclusive leasing agent and will continue managing the office asset for the new owner. The property is 95% occupied.
CREC’s Warren Weiser, Harry Blyden, and Andrew Remick co-brokered the sale of 2121 Ponce alongside CBRE’s Christian Lee, Jose Lobon, and Andrew Chilgren. Roy Rosenbaum, director of acquisitions, and Sean Bannon, managing director and head of US real estate, led the way for Zurich.
“Our experience at 2121 Ponce is an example of how a building’s value can be maximized by bringing a clear vision to life through creative leasing, construction, marketing and property management strategies,” says CREC chairman Weiser. “The investments we’ve made over the past decade have transformed the building into a core institutional-grade asset, leading to this sale. We expect similar acquisition activity in the coming months given high barriers to new development across South Florida.”
Located in the Coral Gables business district one block north of the “main and main” intersection of Ponce de Leon Boulevard and Alhambra Circle, 2121 Ponce includes a five-story, 586-space parking garage and street-level retail space. Goldstein Schechter, Fox Latin America, Valley National Bank, the Consulate of Barbados and CREC call the office building home. POC restaurant is located on the building’s ground floor.
The office property’s setting in Coral Gables’ walkable downtown is also appealing to tenants as the $21 million makeover of two of the neighborhood’s main retail thoroughfares, Miracle Mile and Giralda Avenue, gets underway. The submarket is home to more than 150 multinational corporations, more than a dozen luxury hotels, a free public trolley system, and boutiques and restaurants. Eighty-five new eateries opening in the last five years. Meanwhile, more than 1,500 residential units are expected to come online over the next three years.