A joint venture of Ascentris, Highline Real Estate Capital and SQUARE2 Capital have acquired Westside Plaza, a three-building Class A office campus in Doral, Fla. PGIM Real Estate pocketed $73 million for the 372,639-square-foot, LEED Silver certified asset, according to the South Florida Business Journal.
Located at 8400, 8300 and 8200 NW 33rd St. on 21.4 acres, the properties were developed by Codina Partners and came online between 1996 and 2001. PGIM Real Estate picked up the assets gradually, paying $15.9 million for Westside Plaza I in 1996, $10.1 million for Westside Plaza II in 1999 and $11 million for Westside Plaza III in 2001, according to CommercialEdge data.
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Since its completion, the campus had a combined occupancy of 90 percent. Recently however, the rate dipped to 73 percent and will further decrease in the last quarter of 2022 to reach 51 percent, as another tenant is scheduled to move out. The new owners are planning to upgrade the buildings and outdoor spaces, including the lobbies, common spaces and restrooms. The overhaul is slated to add a conference center, fitness facility and tenant lounge to the property.
The CBRE Capital Markets team representing the seller included Chris Lee, Jose Lobon, Andrew Chilgren, and Marcos Minaya, while Amy Julien arranged the financing for the buyer. JLL’s Steven Hurwitz and Doug Okun will handle the leasing and SQUARE2 Management will be in charge of operating the properties.
Investing in Miami
The deal marks Ascentris’ first acquisition in Miami-Dade County. In early October, the Denver-based private equity firm sold Fountain Square, a 242,690-square-foot Class A office campus in Boca Raton, Fla., in a joint venture partnership with Bridge Investment Group. IP Capital Partners and Edge Principal Advisors picked up the Class A property for $77.3 million. CIBC Bank USA backed the transaction with a $56.5 million loan.
The Magic City’s office market has remained active during the pandemic, outperforming other gateway markets. The Airport/Doral submarket saw the highest net absorption of Class A office space within the Miami market in the third quarter of the year, according to David Moret, president of Highline.
In September, the largest office deal within the Miami area was the sale of the former Miami Herald and its Spanish sister paper, El Nuevo Herald headquarters in Doral, Fla. A joint venture headed by Parmenter Realty Partners picked up the asset from SMPO.