The affiliate of Coral Gables-based Capital Realty Services Inc. used the proceeds from a $16.67 million loan through Lehman Brothers to acquire the class A office space in five buildings in the Kendall Summit office park, 11400 N. Kendall Drive.

"Fidelity is an excellent partner, but they have short-term investment horizons, and wanted to take their profit and look for other opportunities," Isaac K. Fisher, a principal officer in Capital Realty Services, tells GlobeSt.com. "We, on the other hand, are long-term holders and believe that continued appreciation in market rents will continue to add value to the property."

Over a period of two years in the late 1990s, Fisher and business partner Robert G. Berrin acquired the Kendall Summit properties for about $15 million in a joint venture with Fidelity Investments. Miami businessman Bernard Wolfson developed the site over a four-year period in the late '80s.

"We acquired two of the buildings from him in 1989," Fisher says. "The other three sold while under construction. They went through a couple of owners before we bought them."

The Capital Realty affiliate used the proceeds from a 10-year, fixed-rate mortgage-refinancing package through Lehman Brothers to acquire Fidelity Investment's interest, Fisher says.

Berrin arranged the financing in partnership with Charles J. Foschini, a Miami-based mortgage broker with Houston-based L.J. Melody & Co. Neil S. Rollnick, a partner in the Coral Gables-based law firm of Rollnick & Linden, represented Kendall Summit/FREAM. Manuel A. Fernandez, an attorney in the Miami-based offices of the New York law firm Stroock & Stroock & Levan, negotiated for Lehman Brothers.

"It is a conduit (loan)," Fisher says. "Lehman Brothers will bundle this into a loan-securitization offering at some point in the future."

Leased at $17.50 per sf net of electricity, the office park is about 95% occupied. Major tenants include BankAtlantic Bancorp Inc., Jones College, Quest Diagnostics and a variety of professional services firms.

"The market itself has an occupancy of about 95%, and we're at the top of the market in terms of quality and asking rents," Fisher says. "The property is fully renovated. We put in about $1 million in renovation work over the past two years."

Instant Insights /

GlobeSt.com EXCLUSIVE: Fidelity Divests Interest in Office Park

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