MIAMI—550 Biltmore, a trophy-quality office building in Coral Gables, has traded hands. This is the second significant office property to trade in 2014 in Coral Gables. The other was Douglas Entrance, which traded for just over $100 million in March. Financial terms of this deal were not disclosed. CBRE inked both deals.

“While Coral Gables always draws significant investor interest, 550 Biltmore surpassed the norm,” says Christian R. Lee, vice chairman of CBRE. “We believe that is attributable to factors including: the high quality of the building itself, an increased demand by both domestic and off-shore capital for trophy properties and an overall improvement in the office market fundamentals.”

550 Biltmore is 86.4% leased. The class A, 160,000-square-foot office building generated strong interest in the project from a number of the nation's leading investment firms as well as new-to-market private international buyers.  

“Miami has experienced tremendous leasing activity in recent years, with absorption coming from both new-to-market tenants, as well as existing Miami-based tenants expanding,” Lee says. “During this time, Coral Gables has seen its vacancy drop from more than 20% at its peak in 2010 to only 14% today. Meanwhile, this has put significant upwards pressure on rents.”

The class A 550 Biltmore was constructed in 1986 by Miami developer Al Sakolsky. The 16-story building has an Energy Star rating of “94” and has been institutionally owned and maintained since 2004. In fact, ownership has invested $4 million in capital improvements. 550 Biltmore is anchored by UBS, which occupies more than 40,000 square feet and has entered a long-term lease expansion.

“550 Biltmore's iconic, pyramid-shaped design affords its tenants with a plethora of outdoor terraces from which to enjoy the sublime Coral Gables cityscape of world-class golf courses, historical Mediterranean revival buildings, magnificent fountained plazas, a vibrant commercial core, and a lush and verdant landscape that crystallizes the 'City Beautiful' movement that drove the City's design and incorporation nearly 100 years ago,” says José Lobón, CBRE Senior Associate.

The Miami-based CBRE team representing the seller included Lee and Lobón with CBRE Capital Markets, Institutional Properties; and Charles Foschini, vice chairman, and Chris Apone, first vice president, with CBRE Debt & Structured Finance. Brian Gale, principal, and Ryan Holtzman, director of Leasing with Taylor & Mathis, assisted the CBRE team with market leasing.