Lone Star Funds Backs $221M Fort Lauderdale Office Buy
For the second time in as many days, a Fort Lauderdale office property has changed hands for more than $200M.
Miami-based firms Square2 Capital and Highline Real Estate Capital, along with Texas-based private equity giant Lone Star Funds, have acquired the Bank of America at Las Olas City Centre, according to a release.
The 23-story office tower sold for $221M, according to a source familiar with the transaction. The seller, a fund managed by DWS, acquired the property for $220M in 2016 under the entity TAF GG Las Olas LP, according to property records provided by Vizzda.
DWS's RREEF fund also this week sold an office property across the street, Las Olas Centre I and II at 350 and 450 East Las Olas Blvd., for $208M. It held both properties for roughly a decade and notched just a combined $5M in price appreciation between both assets.
Lone Star Funds’ affiliate, Lone Star Real Estate Fund VII LP, and its partners purchased the property with plans to upgrade its lobby and common areas and add a tenant lounge and conference center, according to a release.
“We see a unique opportunity to invest in high-quality office assets that are among the best in their competitive set,” Jérôme Foulon, global head of commercial real estate at Lone Star, said in a statement.
The 410K SF property houses tenants like Bank of America, Greenberg Traurig, Boies Schiller Flexner, Motorola Solutions and UBS. It also has six restaurants including Cayo Taco, Playa Bowls and Crema.
The seller was represented by a CBRE team led by Christian Lee and Sean Kelly. The buyer was represented by CBRE’s Tom Traynor, Tom Rugg, Amy Julian and Andrew Chilgren, according to a release.
CBRE declined to disclose the lender and financing amount.
Square2 Capital is attempting to replicate its success in the neighborhood after it acquired Courthouse Commons and Las Olas Square at 501 and 515 East Las Olas Blvd., which it bought with partners in 2016 for $90M, then renovated and sold for $144M in 2022, The Real Deal reported.
“With our previous repositioning success at 501 & 515 Las Olas Blvd., we are confident we can amplify 401’s position as one of the most sought-after office towers in the state,” Square2 Capital principal Jay Caplin said in a statement.
Lone Star has organized 25 private equity funds with aggregated capital commitments totaling about $95B, according to the release. The company isn't a stranger to South Florida, purchasing two Palm Beach County senior living facilities for $57M in 2021, TRD reported.
