• Current Investments
  • TC Energy Center
  • Comerica Bank Tower
  • Marathon Oil Tower
  • Plaza of the Americas
  • Hermann Park Plaza
  • Alden Landing
  • The Marling
• Office Case Studies
  • The Alhambra
  • 919 Milam
  • The Colonnade
  • One Buckhead Plaza
  • One Briarlake Plaza
  • Five Post Oak Park
  • Exchange Building
  • Sawgrass Office Portfolio
  • Sunset North Portfolio
• Multifamily Case Studies
  • 2411 Washington Avenue
  • Waterscape Apartments
  • Heritage At Park Row
  • Andalusian Gate Apartments
  • Pavona Apartments
  • The Lodge at Willow Creek
  • Lloyd Place Apartments
  • Defoor Village Apartments
  • Overlook Pointe
  • 14220 at Park Row

The Colonnade

Coral Gables, Florida

Historical Transaction

NRSF: 208,840

Total Capital: $51.4 million
Equity Invested: $13.4 million
Status: Sold
Realized Multiple: 3.6x
Realized IRR: 35%

The Colonnade is an 11-story Class A office tower (“Colonnade”) located at the intersection of Miracle Mile and Ponce de Leon Boulevard in the Coral Gables CBD. Colonnade is part of a mixed-use complex with 23,000 square feet of retail store frontage along Miracle Mile and a connection to the Westin Colonnade hotel.  The Coral Gables CBD has historically benefitted from an outstanding local economy driven by the multi-national organizations and financial services industries.  At time of acquisition in August 2003, the CBD office market was 83% 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.

Opportunity

• Seller was a privately held bank with property/asset management deficiencies – irreplaceable asset with premier location considered “Main and Main” in the Coral Gables financial district.
• 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.

Value Enhancement Strategy

• Due to limited size of the typical tenant in the market, created functional executive suites operation to address a need unmet in the market at time of acquisition.
• Ownership made a significant capital investment in the building spending approximately $3.0 million dollars on a new roof, cooling tower, and chillers.