Related, CP Group pays $145 million for office complex in downtown Fort Lauderdale – Business Observer
Some of South Florida’s biggest office players have swapped mixed-use property in downtown Fort Lauderdale. A Related companies-affiliate and the CP group lost $144.5 million to buy Las Olas Square, according to people familiar with the matter.
The development consists of two contiguous assets – a 17-story office tower built in 1991 and a three-story mixed-use building – in addition to a four-story parking structure.
The 267,000 square foot property sits between 5th Avenue SE and the Dixie Freeway, occupying a full city block along the city’s main thoroughfare, Las Olas Boulevard.
Sellers, financial giant Global Apollo Management, SQUARE2 and Steelbridge Capitalpaid $86.5 million for the site in 2016, according to property records.
Three years later, the joint venture reconfigured the low-rise building, which houses offices and a commercial ground floor, totaling 52,808 square feet. In 2020, she also sold part of the property to Jorge Perezit is Associated group for $20 million, which is currently building a 50-story residential tower on the site.
Las Olas Square is now 88% let to 17 tenants, including a flexible office provider The spacesa Truist Bank branch and restaurant The Del Frisco Grid. Cushman and Wakefieldit is Herring Travis and Katherine Ridgway will remain the rental agents.
The buyers took out a $120 million floating rate loan from a Alliance Bernstein funds. CBREit is Amy Julienwho arranged the financing, declined to comment.
The joint venture plans to further invest in the property by renovating the lobby, common areas and outdoor spaces, and adding a cafe.
“As businesses continue to relocate and expand in South Florida, we are excited to add this prime office building in Fort Lauderdale’s most desirable office corridor to our portfolio, and to continue to improve its offer of tenants”, Michael Winstongeneral manager of Management of related fundssaid in a statement.
The company is the investment arm of Stephen Ross‘ Related Companies, one of the largest developers in New York and West Palm Beach.
His partner, CP group, is an office powerhouse in South Florida. Last year, the Boca Raton-based investor, formerly known as Crocker Partners, sold a stake in IBMthe former $320 million research center and bought Miami A Biscayne Tower for $225 million.
CBREit is Christian Le and Andrew Chilgrenwho represented the sellers in the latest transaction, declined to comment.
Julia Echikson can be contacted at [email protected].
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