550 Biltmore in Coral Gables Sold for $50M

The multi-tenant office and mixed-used project at 550 Biltmore in Coral Gables, Florida sold this month as a Prudential Real Estate Investors affiliate listed as PR 550 Biltmore Way purchased the property for $50.2 million. The trophy property was sold by KPERS Realty Holding #39, which is managed by Boston-based AEW Capital Management, in a deal brokered by CBRE. Terms of the deal were not disclosed. The building last sold in 2004 for $35.8 million.

"While Coral Gables always draws significant investor interest, 550 Biltmore surpassed the norm," said Christian Lee, vice chairman of CBRE. "We believe that is attributable to factors including: the high quality of the building itself, an increased demand by both domestic and off-shore capital for trophy properties and an overall improvement in the office market fundamentals."

"550 Biltmore's iconic, pyramid-shaped design affords its tenants with a plethora of outdoor terraces from which to enjoy the sublime Coral Gables cityscape of world-class golf courses, historical Mediterranean revival buildings, magnificent fountained plazas, a vibrant commercial core, and a lush and verdant landscape that crystallizes the ‘City Beautiful' movement that drove the City's design and incorporation nearly 100 years ago," added José Lobón, CBRE Senior Associate.

Originally constructed in 1986 by Miami developer Al Sakolsky, 550 Biltmore is a 160,000-square-foot, 14-story pyramidal landmark in downtown Coral Gables with a facade of imported Italian travertine marble and black granite. The building has been awarded multiple Energy Star labels for operating efficiencies, with a current Energy Star rating of "94", owed in part to the $4 million in capital improvements made since 2004. At the time of sale, the property was 86.4% leased and is anchored by UBS, which occupies more than 40,000 square feet and has entered a long-term lease expansion.

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