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