American Ventures Realty Investors recently completed the sale of its office tower in Coral Gables, Fla., to RREEF for approximately $60 million, or $272 per square foot.
The 220,000-square-foot property at 255 Alhambra Circle had been part of American Ventures’ investment portfolio since 1994. Since 2004, American Ventures had owned the property in a joint venture with Investcorp, a global investment group.
“This essentially is a win-win transaction,” said Philip Blumberg, president and CEO of American Ventures. “The price amounts to a 50 percent return for American Ventures and Investcorp in just two years. The transaction price also reflects the strength of the commercial real estate market in Florida. Given the robust environment, we anticipate that this office building — and others like it in the area — will continue to generate strong cash flows for years to come.”
Acquirer RREEF, a U.S.-based real estate investment manager, is a division of DB real estate, the investment management group of Deutsche Asset Management.
The Coral Gables office tower was 91 percent leased at the time of sale and includes BankUnited, Stiefel Laboratories and Watson & Wyatt Worldwide as principal tenants. American Ventures sold the property as part of a rebalancing of its investment portfolios, which have comprised some $500 million in commercial real estate and other assets.