The Alhambra

Coral Gables, Florida

Historical Transaction

NRSF: 317,566
Total Capital: $72.3 million
Equity Invested: $25.3 million
Status: Sold
Realized Multiple: 2.7x
Realized IRR: 32%

The Alhambra is a two-building office complex (“Alhambra”) containing 317,556 NRSF that is located in the Coral Gables CBD. The two office buildings, Alhambra Plaza (built in 1987) and Alhambra West (built in 1961) are connected to a Hyatt Regency hotel. The Coral Gables CBD has historically benefitted from an outstanding local economy driven by the international and financial services industries. At time of acquisition in August 2004, the CBD office market was 86% leased on average, had experienced strong Class A rental rate growth over the preceding three years, and market trends remained positive with the return of new construction including pre-lease commitments.


  • Limited-marketing transaction – the two building (A and B+) complex exhibited inefficiencies in operations and leasing/marketing under the seller’s management.
  • Market research projected tightening in Coral Gables CBD with increases in rental rate and occupancy. Minimal construction and increased demand of office space was projected to allow new ownership to push rents in this highly sought after market.
  • The variations among the two building’s floor plates would allow new ownership to focus on tenant retention and diversification by tenant size and profile.

Value Enhancement Strategy

  • Proactively renewed two major tenants, including one not scheduled to expire for three years. In doing so, increased weighted average lease term from 4 years to over 7.5 years.
  • Ownership implemented a $1.0 million capital improvement plan to upgrade HVAC, security, and resealing the exterior façade.