Blackstone Drops $230M On 2 Miami Buildings
San Francisco-based Shorenstein Properties announced Friday that it sold two high-profile Class-AA office buildings in downtown Miami to funds managed by Blackstone Real Estate for $230M.
MiamiCentral is a mixed-use, transit-oriented development project that spans six city blocks. The train station was designed to accommodate Brightline private trains and Tri-Rail regional trains, and connect via pedestrian bridge to the adjacent Government Center, with Metrorail and Metromover trains and bus connections. It opened in 2018.
The 2 and 3 Miami Central buildings comprise 330K SF and make up the office portion of the project.
The property's 2 Miami Central, at 700 NW First Avenue, consists of a 17-story office building and a 288-stall valet parking garage, while 3 Miami Central, at 161 NW Sixth Street, consists of a four-story office building atop an eight-story, 1,068-stall parking garage with 33K SF of street-level retail.
MiamiCentral also includes two residential towers with 800 units and an 18K SF food hall.
The office buildings have open rectangular floor plates, floor-to-ceiling windows, a conference center, a fitness center and an outdoor amenity deck. A Publix supermarket is poised to open on the ground floor of 3 MiamiCentral.
Blackstone's Technology & Innovations group occupies about 12% of the space at 2 MiamiCentral, where 200 employees on its technology team will work, according to the sale announcement. Other tenants include Carlton Fields, Ernst & Young, New Fortress Energy and ViacomCBS.
The buildings are 98% occupied with remaining lease terms of more than eight years on average.
“We are high conviction, thematic investors focused on investing in growing markets with strong demographic tailwinds and talent pipelines, such as Miami," Blackstone Real Estate Senior Managing Director David Levine said in a statement. "Two & 3 MiamiCentral are extremely high-quality assets in a prime location with access to mass transit, and we are pleased to acquire them on behalf of our investors.”
“This deal is a great example of executing on our thesis of investing in high-quality properties in growing markets and adding significant value through leasing and capital improvements," said Claude Esposito, vice president, investments group at Shorenstein. "We are proud to have positioned the property for future success and know that the tenants of 2 and 3 MiamiCentral are in good hands with Blackstone Real Estate.”
The property was briefly known as Virgin MiamiCentral and the trains were known as Virgin Trains USA following a marketing deal between Brightline and Richard Branson's Virgin Group. But Brightline terminated the deal in 2020. Virgin Enterprises is suing for $251.3M.