A partnership led by New York fund shop East End Capital has agreed to pay Witkoff Group $84 million for an office building in downtown Miami.
The acquisition of the 285,000-square-foot New World Tower would mark East End’s first foray into Miami’s office market, where it intends to be active. At $295/sf, the firm’s initial annual yield would be 5.25%.
Eastdil Secured is brokering the sale for the New York investment shop, led by Steven Witkoff. The firm acquired the 30-story building, at 100 North Biscayne Boulevard, in 2012 from Westbrook Partners of New York and Panther Real Estate of Miami for $65 million.
The marketing campaign noted that a buyer could boost the 82% occupancy rate, which was below Miami’s 87% average at yearend. The word is that the East End partnership also was attracted by the long-term potential for additional development. The property includes a 12-story garage on a 12,500-sf lot at 130 North Biscayne Boulevard. Zoning allows for 600,000 sf of development on that site, for commercial, residential or hotel use.
The office building once served as the headquarters of BellSouth, which emerged from the 1984 breakup of AT&T and was re-absorbed in 2006. Telecommunications companies continue to account for about 25% of the space, drawn by extensive technological features, including fiber-optic cables.
Developed in 1966, the property includes 7,000 sf of ground-floor retail space and the garage, with 396 spaces. Marketing materials touted unobstructed views of Biscayne Bay and Miami Beach.
East End is looking for additional office investments in Miami. It opened an outpost in the city last year to manage its holdings after acquiring other types of properties, including a retail center and a mixed-use project.