East End Capital's latest Miami buy is like giving the new landlord a catcher's mitt for smaller firms wanting a CBD address.

East End Capital recently purchased 100 Biscayne Blvd (aka New World Tower), the 310k SF Downtown Miami office tower, for $84M.

East End plans to do $10M worth of renovations to the circa 1960s office building, including the lobby, garage, corridors and bathrooms as well as adding conference rooms and a fitness center.

At a time when Downtown Miami is seeing a resurgence—and a new supply of top-shelf, Class-A office space underway—East End founder Jonathon Yormak tells us there's a real opportunity to capitalize on being Class-B.

"We've been targeting downtown because we believe there's a real shift" in demographics and a desire by companies to be in the CBD.

But there are tenants—retail showrooms, fashion retailers, tech companies, boutique firms—unwilling or unable to pay the $50-plus/SF freight it takes to occupy tony Class-A towers, Jonathon says.

That's where 100 Biscayne fits in: rents—which East End can push as much as 20% even after the renovation—will still rank in the high $30/SF range, while offering elevated views of the city and the bay.

Jonathon is purposely targeting smaller firms, with renovations subdividing more floors to fit more tenants, even as occupancy is at 80%. It's often those firms that are seeking Class-B space in the CBD, he says.

East End has been making big bets on Downtown Miami since its market entry in 2013. Recently, it delivered the Wynwood Arcade mixed-use retail space, and it got a green light from city planning officials to start Wynwood 25, a 400k SF, 289-unit apartment project sandwiched between Northwest 24th and 25th streets (above).