DRA Advisors and CP Group Acquire Iconic Office Building 'Miami Tower' In Downtown Miami For $163.5 Million

DRA Advisors and CP Group have acquired Miami Tower, a 627,152-square-foot trophy office tower in Downtown Miami’s Central Business District for $163.5 million. Mike Davis, Dominic Montazemi, Mike McDonald, Miguel Alcivar, Rick Brugge, Rick Colon, and Adam Spies of Cushman & Wakefield represented the seller, USPO Miami, LLC, in the transaction. Jason Hochman and Ron Granite of Cushman & Wakefield also arranged the acquisition financing through PGIM on behalf of the buyer, DRA Advisors and CP Group.

“Miami Tower is a hallmark icon of the Miami skyline with a storied history,” said Montazemi, Executive Managing Director at Cushman & Wakefield. “CP Group together with DRA have a vision to elevate the asset with significant capital investment and plans for modernizations that will place Miami Tower as a category-defining option for tenants seeking the very best transit-oriented workplace solutions together with state-of-the-art on-site amenities.

Additionally, “The asset’s live-work-play environment and location in an area that has had more than $23 billion worth of recent development happening will continue to attract interest from established businesses in and outside of Florida,” said Davis, Executive Vice Chair at Cushman & Wakefield.

Located at 100 SE 2nd St., Miami Tower is a trophy asset that spans 47 stories and is currently 67% occupied while historically averaging 90% or better. The office tower features a unique triple-tiered light display and best-in-class amenities such as an on-site conference center, fitness facility, Sky Lobby and Sky Terrace event space, ground floor retail, and adjacent Hyatt Regency Miami Hotel. It’s also the only office building in Miami that is fully connected into the city’s public transit system with an integrated Metromover station, which provides nearly immediate access to Miami Central station.

Miami Tower has been a critical part of the city’s public and business community since it was built in 1987, and significant capital has been invested in renovation projects over the years to maintain it. Under new ownership, the office tower offers potential value-add through further enhancements to its amenities.

City National Bank & UBS Lease 142,000 SF Of Office Space Valued At $75.1 Million At Miami Tower

City National Bank of Florida and UBS have inked deals to lease 142,000 SF of office space valued at $75.1 million at Miami Tower, a 47-story, landmark office skyscraper at 100 SE Second St. in Downtown Miami. The leases bring Miami Tower to 94% occupancy, outpacing Downtown Miami Class A office space market. The transactions were overseen by Transwestern’s South Florida Agency Leasing Team with Transwestern Managing Director Glenn H. Gregory and Vice President Christopher Dubberly provide leasing services on behalf of Miami Tower ownership.

City National Bank, the third-largest Florida-based bank, signed a long-term lease renewal and 57,000 SF expansion for a total footprint of 105,000 SF at Miami Tower. Upon its purchase of TotalBank in June 2018, City National Bank made the decision to expand within the building to accommodate its new headquarters, which the Transwestern team expedited. Matthew Goodman and Jeff Gordon of JLL represented the tenant. In addition, multinational investment bank and financial services company UBS renewed its 37,000 SF lease. Tony Jones of Cushman & Wakefield represented the tenant in the long-term lease.

“The transactions with City National Bank and UBS represent tenants’ ongoing attraction to Miami Tower as a preferred location, boasting nearby amenities and direct access to Interstate 95,” said Dubberly. “City National Bank had multiple options for where to place its headquarters, from owned to leased space, and, ultimately, Miami Tower’s attributes and the nimbleness of our team secured the deal.”

Transwestern was retained to lease Miami Tower in January 2017 when the building was 80.8% occupied. The team has since increased the building’s occupancy rate to 94.2 %, which significantly outpaces the downtown Miami office market’s average Class A occupancy, which is currently 78.3%. According to research by Transwestern on the two Miami Central Business District submarkets, Class A rent in downtown Miami averages at $44.97 per square foot, compared to Brickell’s $51.21 per square foot.

“With one of the lowest vacancy rates in downtown, Miami Tower stands out as a market leader on par with Brickell’s more expensive Class A office options,” said Gregory. “While Brickell has a Class A vacancy rate below 10 percent, compared to that of downtown at nearly 22 percent, it’s worth noting that more than 60 percent of downtown’s vacant space is contained within just two buildings. As those buildings compete for new leases, we’re pleased that Miami Tower is in such a positive position.”

Miami Tower is one of the tallest buildings that illuminates Miami’s skyline. Centrally located in Downtown, the LEED Gold building features a state-of-the-art conference facility, fitness center, the only on-site Metromover station in Downtown, and access to many restaurant, retail, and hotel options.

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