JLL Arranges $443M Sale of 701 Brickell, Second Largest Office Sale in Florida History
Tuesday, Oct 8, 2024 3:16 pm ET
1min read In a significant transaction for the South Florida commercial real estate market, JLL has facilitated the sale of the iconic 701 Brickell office tower to Elliott Investment Management for approximately $443 million. This deal marks the second-largest office sale in Florida's history, highlighting the region's continued appeal to investors.
The 33-story, 687,000-square-foot tower, located at 701 Brickell Avenue, was previously owned by Nuveen Real Estate, a subsidiary of Teachers Insurance and Annuity Association of America (TIAA). Nuveen initially listed the property in April with a target price exceeding $500 million. JLL, the brokerage firm handling the marketing of the property, declined to comment on the transaction.
The sale price of $443 million represents a slight decrease from the initial asking price. This reduction can be attributed to several factors, including the current economic climate and market conditions, as well as the property's location in the Brickell district. Despite the decrease, the final sale price still reflects the strong demand for prime office spaces in South Florida.
The property's recent renovations and high occupancy rate played a significant role in the sale price. Completed in 1985, the tower underwent renovations in 2021, and it is currently over 90 percent leased. Tenants include prominent firms such as Holland & Knight, Kaseya, Bank of America, and Pura Vida. The building's strategic location in the Brickell district, a major recipient of out-of-state firms, further contributed to its value.
Key negotiating factors between Nuveen Real Estate and Elliott Investment Management likely included the property's potential for future appreciation, given the growing demand for office spaces in the region. Additionally, the high occupancy rate and the building's prime location in the Brickell district would have been crucial factors in the negotiations.
The sale of 701 Brickell underscores the continued appeal of South Florida's commercial real estate market, particularly in the Brickell district. As out-of-state firms continue to flock to the region, investors can expect a strong demand for prime office spaces, driving further investment and growth in the market.
In conclusion, the $443 million sale of the 701 Brickell office tower, facilitated by JLL, represents a significant milestone in the South Florida commercial real estate market. The transaction reflects the region's strong appeal to investors, despite the slight reduction in the sale price from the initial asking price. As the market continues to evolve, investors can expect further growth and opportunities in the South Florida office sector.
The 33-story, 687,000-square-foot tower, located at 701 Brickell Avenue, was previously owned by Nuveen Real Estate, a subsidiary of Teachers Insurance and Annuity Association of America (TIAA). Nuveen initially listed the property in April with a target price exceeding $500 million. JLL, the brokerage firm handling the marketing of the property, declined to comment on the transaction.
The sale price of $443 million represents a slight decrease from the initial asking price. This reduction can be attributed to several factors, including the current economic climate and market conditions, as well as the property's location in the Brickell district. Despite the decrease, the final sale price still reflects the strong demand for prime office spaces in South Florida.
The property's recent renovations and high occupancy rate played a significant role in the sale price. Completed in 1985, the tower underwent renovations in 2021, and it is currently over 90 percent leased. Tenants include prominent firms such as Holland & Knight, Kaseya, Bank of America, and Pura Vida. The building's strategic location in the Brickell district, a major recipient of out-of-state firms, further contributed to its value.
Key negotiating factors between Nuveen Real Estate and Elliott Investment Management likely included the property's potential for future appreciation, given the growing demand for office spaces in the region. Additionally, the high occupancy rate and the building's prime location in the Brickell district would have been crucial factors in the negotiations.
The sale of 701 Brickell underscores the continued appeal of South Florida's commercial real estate market, particularly in the Brickell district. As out-of-state firms continue to flock to the region, investors can expect a strong demand for prime office spaces, driving further investment and growth in the market.
In conclusion, the $443 million sale of the 701 Brickell office tower, facilitated by JLL, represents a significant milestone in the South Florida commercial real estate market. The transaction reflects the region's strong appeal to investors, despite the slight reduction in the sale price from the initial asking price. As the market continues to evolve, investors can expect further growth and opportunities in the South Florida office sector.
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