An affiliate of CBRE Global Investors, Strategic Partners U.S., has bought Airport Corporate Center from Hines REIT. The 45-acre, 11 building office park changed hands for a reported sum of $132.3 million.
Vance Maddocks, Strategic Partners U.S. president, stated recently that the company was attracted to Miami by the city’s growth and strong local economy. Strong job creation numbers and a high demand for office space were points in The Magic City’s favour.
The block of property is located at 7200-7665 Corporate Center Drive, which is immediately adjacent to Miami International Airport. A road construction project is currently underway which will improve access to the property which will be completed later this year or early in 2015.
The Airport Corporate Center includes single-storey and mid-rise office buildings with structured and surface parking. The property, which includes over 1 million square feet of rentable space, was 78.6 per cent leased at the time of sale.
Maddocks commented that the vacancy rate for office space in Miami has plunged dramatically over the past two years. He also started that Strategic Partners is buying the property at a discount from its “long-term fundamental value.”
This is Strategic Partners’first foray into the Miami office market, although it has bought properties in South Florida in the past. The firm buys good quality real estate in markets where there is significant upside potential. Strategic Partners plans to renovate the entire park and lease it in a recovering market.
The planned renovations include upgrades to the interior and exterior of the property, landscaping upgrades, as well as implementation of Strategic Partners’5-Star Worldwide service and amenity program, which includes the addition of a fitness centre and conference centres.
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