Agave Exec Shares Coral Gables Strategy

Save the date: RealShare Apartments East comes to the Hyatt Regency in Miami, FL, on February 26.

MIAMI—On the heels of the announcement that dubbed 396 Alhambra Coral Gables' first newly-constructed LEED Gold office building, the property won yet another multinational company. Indeed, the property is home to the likes of HBO Latin America, Diageo, and, most recently, Mondelez International.

Agave, the developer of 396 Alhambra, has invested more than $150 million in the Gables and has overseen the delivery of more than 3 million square feet of new office and industrial properties around the world. GlobeSt.com caught up with Jose Antonio Perez Helguera, managing director of Agave, to discuss what attracted his firm to invest so heavily in Coral Gables, the challenges that remain in the Miami submarket and more.

GlobeSt.com: Agave has invested more than $150 million in Coral Gables—what has attracted you to this submarket of Miami?

Perez Helguera: As a multinational development firm looking to gain a foothold in Florida, we saw Coral Gables a natural place to develop 396 Alhambra. Pedestrian-friendly, surrounded by world-class restaurants and centrally located nearby Miami International Airport, executive and workforce housing, University of Miami, and Downtown Miami, Coral Gables is a center of activity for multinational companies and a hub for international business and finance. Coral Gables meets all of the criteria we set out to achieve when planning for our first ground-up project in Miami

GlobeSt.com: What challenges remain in Coral Gables' office market?

Perez Helguera: Generally speaking, Coral Gables is very well-positioned for continued growth. We have been impressed with the high caliber of tenants who have signed leases at 396 Alhambra and toured the building. If there is any weakness, it's that Coral Gables is lacking in premium office product by comparison to the Downtown Miami/Brickell market. Since Coral Gables has experienced less development since the economic downturn, there are barriers to entry for some major users seeking large swaths of square footage. Many of the market's older buildings are unable to offer the modern amenities, flexible floor plates, and premium finishes and sustainability features that newer class A properties offer.

GlobeSt.com: What was behind the decision to invest in renovating 396 Alhambra's South Tower?

Perez Helguera: 396 Alhambra's South Tower, built in 1964, was formerly home to the Exxon Mobile Corporation. It is one of the few original mid-century modern buildings remaining from that era in Coral Gables. Working with the City of Coral Gables, we were able to renovate the building and take advantage of its rich history, strong bones and flexible floor plates. We have created a seamless experience for tenants and visitors by connecting the North and South tower and equipping both buildings with identical class A finishes. Adaptive reuse is always preferable to ground-up construction because it's more cost effective and environmentally friendly.

Come back this afternoon for part two of this exclusive interview.