FORT LAUDERDALE, FL—Tower 101, a two-building office property in the Fort Lauderdale CBD, has traded for $28.7 million. The sale equals $125 per square foot, a discount over current market values.
CBRE Capital Markets arranged the sale and financing of the 230,238-square-foot office property on behalf of owners Cap Advisors and Principal Real Estate Investors. Banyan Street acquired the office asset, which features a 21-story story office tower built in 2001.
A value-add opportunity, the two buildings are collectively 68% leased. Tower 101 is 90% leased. Tower 101 was built in 1991 while its six-story counterpart was constructed in 1986. Banyan Street plans a significant capital investment on the older asset.
“The six-story building had become really run down over the years because it hadn’t seen much capital investment for a significant amount of time,” Christian Lee, vice chairman of CBRE’s Miami office, tells GlobeSt.com. “The new buyer is coming in with a lot of optimism and plans to renovate that building to deliver high quality space.”
Banyan’s plans include renovations that extend to the elevators, bathrooms, lobbies, corridors, and common areas. When complete, the building will be rehabilitated and ready to compete for CBD market share.
“A brand new renovated product with high quality build out always leases up ahead of older build outs,” Lee says. “I think Baynan will capture far more than their market share of leasing once the renovations are done.”
CBRE’s Miami Institutional Group members, Lee, Charles Foschini, and Jos
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