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