Core Strategy
Description
- One Biscayne Tower, Miami, FL
- Class “B” office building in Class “A” location
- 619,684 square feet
Assignment
- Acquire a partial interest in the property
- Acquire the remaining interest and restructure the ownership
- Recapitalize the asset
- Actively asset manage the property to improve cash flow and increase market value:
- Accentuate Competitive Advantages
- Unencumbered views of Biscayne Bay
- Central CBD Location
- Efficient floor plates
- Abundant parking
- Bankers Club – a private social lunch club
- Build the leasing and marketing strategy on the base of the outstanding views of Biscayne Bay
- Increase the tenant profile in the building
Result
- Acquired the remaining equity partial interest
- Negotiated a new 60% LTV, interest only, loan at 6.17% for 10 years
- Re-measured the office building, increasing the Net Rentable Area by 72,099, or 11.6%
- Stabilized the occupancy of the building from 72% to 92%
- Increased rent from $25.00 per sf/yr to $35.00 per sf/yr, 40%, over 3 years
- Increased parking rates by 10%
- Achieved lowest per sf operating expenses in the submarket (increased competitiveness)
- Negotiated with GSA to vacate the 25th floor in lieu of leasehold condemnation
- Received Energy Star award for 2007, 2008 & 2009 (one of only a handful of buildings)
- Finished common area restroom renovations
- Improved relationships with tenant representation brokers in submarket
- Secured 3 of the top 10 law firms in the state of Florida as tenants
