11 Building Portfolio Finds New Owner For $132M

Hines REIT agreed to sell the Airport Corporate Center in Miami for $132.3 million.

The Houston-based REIT disclosed in a U.S. Securities and Exchange Commission filing on July 17 that the 11 buildings and 5.5 acres of developable land were under contract, with a closing date scheduled for September. The pending buyer is CBRE SPUS7 Acquisitions, which is managed by Michael E. Burrichter and Mark Zikakis, both executives with CBRE Global Investors in Los Angeles.

The buyer intends to assume the seller’s $79 million mortgage from John Hancock Life Insurance Co.

Hines acquired the property in 2006 for $156.8 million, so this deal would be a 16 percent discount to the purchase price.

The Airport Corporate Center totals over 1.5 million square feet of office and parking garage space, with about 1.02 million square feet leasable. The office park sits on 45 acres along State Road 826.

The properties included in the pending transaction are:

• 7200 N.W. 19th St., with a 116,885-square-foot building constructed in 1981.
• 7205 N.W. 19th St., with an 80,730-square-foot building constructed in 1983.
• A three-building complex, also listed at 7205 N.W. 19th St., totaling 128,351 square feet completed in 1981.
• 7300 N.W. 19th St., with 353,374 square feet of office and parking garage space completed in 1987.
• 7400 N.W. 19th St., with a 40,094-square-foot building completed in 1985.
• 7415 N.W. 19th St., with a 44,608-square-foot building completed in 1983.
• 7600 N.W. 19th St., with 252,907 square feet of office and parking garages space completed in 1993.
• 7415 N.W. 19th St., with 499,254 square feet between two buildings and and two parking garages completed in 1996.
• The 5.5-acre parcel along Northwest 19th Street that sits between the acquired buildings and could accommodate an additional 146,000 square feet of office space.

Major tenants include Norwegian Cruise Lines, Man McKay, United Healthcare Services, CareerSource South Florida, Magellan Health Services, URS Corp., Nextel Communications,General Electric Co., and the Hertz Corp.

 
Source:  SFBJ