Coconut Grove Follows Gables With Big Mo

MIAMI—Last year, I reported about how Coral Gables, FL is gaining office leasing momentum. Now, it seems Miami's Coconut Grove submarket is following suit with investor interest.

Two office buildings in Coconut Grove—Bayview Executive Plaza and Continental Plaza—just traded hands. The total sales price for the two properties is $42 million.

Marcus & Millichap first vice president investments Douglas K. Mandel and Benjamin H. Silver, associate vice president investments, both in the firm's Fort Lauderdale office, represented the seller. They also procured the buyer, Allegra Holding.

“These buildings are well positioned to reap the benefits associated with the explosive growth of new developments in 'The Grove' and the buyer will be able to take advantage of future spikes in demand that will push rental rates to new highs,” says Mandel. Located at 3225 Aviation Avenue, Bayview Executive Plaza is one block west of Bayshore Drive, the world-famous Monty's Raw Bar and the Biscayne Bay waterfront.

A mix of professional tenants occupy the 57,155- rentable-square-foot office building. They include Femwell Group Health Inc., Wolfberg Alvarez & Partners and Pinchasik Yelen Muskat Stein,

“Both assets provide tenants with access to secure and covered parking, world-class restaurants and amenities, and were fully occupied at the time of sale,” Mandel says. “Bayview Executive Plaza has spectacular views of Biscayne Bay and downtown Miami.”

Continental Plaza is a 80,380-square-foot, five-story red-brick building at 3250 Mary Street across. That's across the street from the new Park Grove development site, three planned 20-story condo towers plus retail and office space. Tenants include The Downs Law Group and HealthSun Health Plans.

Tere Blanca, president and CEO of Blanca Commercial Real Estate, tells GlobeSt.com when she looks at office submarkets across Miami-Dade, places like downtown Miami and Brickell, Coral Gables, Doral, Coconut Grove, Aventura and South Miami are all experiencing rising occupancy, rising leasing rates, and little by way of new inventory expected over the next three years.

What's driving this? She says: “These dynamics are being fueled by Miami's global brand as a top international city to conduct business—with more than 30% of the leasing activity coming from new-to-market entries—and by high barriers to entry for financing development of new multi-tenant office product.”