CP Group Expands Miami Office Portfolio to 2M-SF With Latest Purchase
A joint venture between CP Group, Rialto Capital Management and Sabal Capital Partners has acquired One Biscayne Tower.
CP Group, formerly known as Crocker Partners, has expanded its Miami office portfolio to 2 million square feet. A joint venture between CP Group, Rialto Capital Management and Sabal Capital Partners has acquired One Biscayne Tower. CP Group also owns the SunTrust International Center and Citigroup Center.
The 38-story office tower is LEED Gold and Wired certified and offers a fitness center and newly renovated parking garage. It is currently 65% leases, and CP Group plans to drive leasing through a rebrand and strategic building improvements to the exterior, lobby, gym, on-site café and conference center as well as to the tenant floors.
CP Group managing partner Angelo Bianco says that the purchase was an opportunity for the firm to take advantage of the tremendous growth in the Miami market, saying the building is among the city’s most “prestigious office destinations.”
Miami’s office market has accelerated quickly in the last 12 months, catalyzed by the pandemic. Already, the market has seen a wave of new investment activity. In March, Funds managed by Blackstone Real Estate acquired 2 & 3 MiamiCentral, a 330,000-square-foot office complex from Shorenstein Properties for $230 million. The property is lease to a prestigious roster of tenants, including Carlton Fields, Ernst & Young, New Fortress Energy and ViacomCBS as well as Blackstone’s Technology & Innovations group, which occupies approximately 12% of the space at 2 MiamiCentral.
It isn’t surprising that the market is attracting capital considering the favorable market fundamentals. A report from Colliers shows that Miami leads South Florida for office rent growth, thanks to an influx of fintech startups. Asking rents for Class A office space in Miami Beach have rebounded to $56.66 per square foot, up 10.2% year-over-year. The submarket also has limited office supply, putting additional pressure on rents. In Brickell–which Colliers calls “the Manhattan of the South”–the class-A market was boosted by corporate relocations from the Northeast and Midwest. Average rents clocked in at $66.70 per square foot in Q1, an increase of 4.9% over Q1 2020 numbers.
CBRE’s Christian Lee, José Lobón, Amy Julian and Andrew Chilgren represented the seller in the CP Group transaction, while Brian Gale, Andrew Trench and Ryan Holtzman from Cushman & Wakefield, who handle leasing at the property, also assisted with the sale.