MIAMI—Office condos are the new black in Miami. Florida East Coast Realty just announced it would sell office units at 2020 Ponce. That news about five weeks after Newgard Development announced it was bringing office condos back to the urban core at One Flagler.

GlobeSt.com caught up with Harvey Hernandez, chairman and managing director for Newgard, to get his take on why his firm is taking the leap from residential condos to office condos, who he's targeting with One Flagler, and more in part one of this exclusive interview. Be sure to come back to this afternoon's Miami edition for part two.

GlobeSt.com: With two successful residential projects under Newgard's belt, BrickellHouse and Centro, why did you decide to enter the office market now?

Hernandez: There is no doubt that demand for luxury condos in Miami among international buyers is high. We recognized that these buyers—especially those from Latin America—are also used to owning office and commercial properties in their own countries but have not had many opportunities to own those types of properties in Miami.

With this in mind, we joined forces with Midgard to convert the historic One Flagler building into a boutique office condo and bring a new product to market. We're seeing success thus far.

GlobeSt.com: Who is the target buyer for office condo, and how do you market to them?

Hernandez: Our target remains the international buyer pool, with Latin Americans topping the list. We're presenting One Flagler as an opportunity to own a piece of Downtown Miami's office market at prices well below replacement cost.

And because we're selling pre-leased space, the buyer will make an immediate return versus in the pre-construction residential real estate market, where buyers have to put down much more cash to make an investment on a property that will not be completed for another two or three years.

Those are some key differences of investing in an office condo development like One Flagler versus pre-construction luxury condos. Overall, the office condo model is a sound alternative investment in a downtown district that's in high demand. Once buyers understand that, it is an easy sell.

GlobeSt.com: In residential real estate, developers team up with “celebrity designers” for more appeal and offer high-end amenities. How does One Flagler stand out to buyers with a keen eye for design?

Hernandez: One Flagler has the unique benefit of having been designed by famed architect Morris Lapidus in 1952. A true “starchitect,” Lapidus is best known for designing Lincoln Road and for his Miami Beach resort- style hotels—the Fontainebleau, the Eden Roc, and the Bal Harbour Sheraton—all synonymous with the glamour of Miami Beach in the 50s.

His dramatic sweeping lines and iconic design elements can also be seen in One Flagler. The exterior façade has been carefully preserved while the interior has been thoughtfully reimagined and will be rebuilt to meet the need of today's fast-paced business world. Although Lapidus is not alive today to tell us more about his inspiration for the design of One Flagler, his strong legacy and worldwide appeal speaks for itself.