56-Story Office Tower in Miami's Brickell District Gets $300M Construction Loan
This likely is the biggest office construction loan to ever close for a Brickell project.
A new 56-story office tower poised to be one of the preeminent buildings in Miami’s Brickell District obtained a construction loan for a whopping $300 million.
The 830 Brickell building will be a 1 million-square-foot Class A trophy asset with 615,000 square feet of space for rent. The building is set for delivery in the first quarter 2022.
This likely is the biggest construction loan ever issued for a Brickell office tower, said JLL’s Scott Aiese, who worked on the deal. He was on the team that closed the four-year loan July 30 on behalf of the development team. The interest rate wasn’t disclosed.
Miami-based OKO Group LLC, led by Russian billionaire Vladislav Doronin, and real estate investor Cain International, with offices in London, New York and Los Angeles, are developing the tower.
The loan was secured through investment adviser MSD Partners LP, founded by partners in Dell Technologies founder Michael Dell’s MSD Capital LP, which manages Dell’s capital.
The sizable loan is going to a booming office and residential hub that has attracted strong interest from investors who scooped up existing assets and financed new ones. Traffic congestion and frequent street flooding are unresolved issues.
The 830 Brickell tower will rise at 830 SE First Ave., a block south of the mixed-use Brickell City Centre, which jump-started recent growth. Two towers that opened at Brickell City Centre in 2016 were the latest additions to the office market in the neighborhood.
The $1 billion, five-block Brickell City Centre includes offices, the East hotel, condominiums, shops, La Centrale food hall and other restaurants.
Brickell, once mainly a financial office hub, has evolved to become a residential neighborhood offering a live-work-play lifestyle. Over 4,400 luxury residential units are within a two-bock radius of 830 Brickell.
The free Metromover train system services the area and stops at Brickell City Centre.
International and domestic companies are targeted tenants at the planned tower.
“Miami is not only a globally important capital of commerce for international companies, it is also becoming increasingly attractive to domestic firms,” Doronin said in an emailed release. “The 830 Brickell tower will provide these businesses with access to the core of Miami’s financial district as well as world-class architecture, design and advanced functionality that this gateway city and its workforce demands.”
This is the fourth joint venture by OKO Group and Cain. They also are working on luxury Missoni Baia and Una Residences condominium towers. The 57-story, 249-unit Missoni Baia, carrying the brand of Italy’s Missoni fashion and design house, will rise in Miami’s Edgewater neighborhood. The 47-story, 135-unit Una Residences tower will rise in Brickell.
The high-end buildings will open in 2021 with units at Missoni priced from $600,000 to $1 million and at Una starting in the $900,000s.
OKO Group and Cain also are developing the hotel-residential Aman New York in Manhattan, which will have 83 hotel rooms and 21 luxury residences.
Aiese, a JLL managing director in New York, worked with firm associate Alex Staikos in New York as well as with senior director Scott Wadler and director Jesse Wright, both in Miami. This is an HFF legacy transaction as HFF worked on the deal before being acquired by JLL in July.
In another recent transaction that speaks to investors’ interest in Brickell, New York family firm Gatsby Enterprises paid $125.5 million for the 15-story 800 Brickell office tower and a next-door garage.
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