$30M Loan Sparks Office Condo Conversion Project

Mellon United National Bank provided the loan for the mixed-use development, located at the corner of Flagler Street and NE First Avenue. Nexus Development Group CEO Jeremy Green says the project is suitable as an office condominium conversation because most of the existing tenants are jewelry tenants that occupy spaces as small as 450 sf. The average space occupied by tenants in the building is 750 sf.

"In real estate, what sells is price point," he says. "With such small spaces, most tenants can buy space for under $200,000."

Designed by architect Morris Lapidus and built in 1952, One Flagler will feature built-to-suit office suites ranging in size from 200 sf to 12,000 sf with prices ranging from $300 per sf to $400 per sf. In addition to marketing the space to existing tenants, Nexus will target jewelry tenants in buildings located near the property, as well as service-oriented professionals such as lawyers and accountants.

"As rental rates continue to rise, the option to buy attainable professional office space in the heart of Miami's urban core is a compelling alternative for boutique and mid-size professional service firms," says Didier Choukron of PIX Holdings, the exclusive sales and marketing firm for One Flagler.

The property also contains 15,000 sf of ground-floor retail space that will be available for lease. The project is located in Miami's Central Business District. It has easy access to Metrorail and Metromover, valet parking, a drop-off/pick-up lane for passengers on NE First Avenue.

Interior improvements will include a completely renovated lobby, common areas and restrooms; high-speed elevators; upgraded HVAC system; upgraded fire safety and sprinkler system; high-tech security system with 24-hour security, building and floor access control; dedicated jewelry floors with industry-specific technical and security upgrades; and on-site maintenance, engineering and janitorial personnel.