Brickell Avenue office building sells to Parkway, KKR

Parkway Properties and KKR acquired the 30-story office tower at 1111 Brickell Ave. in Miami.

The parties declined to disclose the price of the transaction. However, it should be revealed once the deed is filed in county records.

PR 1111 Brickell LLC, an affiliate of Prudential, sold the 522,892-square-foot office building to private REIT Parkway and global investment firm KKR. CBRE’s Christian Lee and José Lobón brokered the deal in the off-market transaction, while CBRE’s Amy Julian and Andrew Chilgren helped the buyers secure financing from Square Mile Capital Management.

CBRE didn’t disclose the amount of the loan. The mortgage should soon be filed in county records.

CBRE said the building was 83 percent occupied. Banco Sabadell has its name on the building. Iberiabank, which acquired Sabadell’s U.S. subsidiary, is still a tenant, Lee said.

“Brickell and the Miami CBD are on radar screens for major investors around the world,” Lee said. “It’s not often they get the opportunity to buy one of the finest buildings in the market, and when they do, they are highly competitive about it.”

Shipley Hall, managing director of Florida for Parkway, said this was the company’s first institutional purchase since it went from a public company to a private REIT following a series of mergers and property sales. The company plans to enhance the building with a more active lobby, new food and beverage offerings, and an improved amenity deck with fitness facilities, Hall said.
“Our theme is office meets hospitality,” Hall said.

Blanca Commercial Real Estate will remain the leasing agent for 1111 Brickell, Lee said.

Built in 2000, the tower last traded for $184.33 million in 2013.