The developer would not disclose what the lease is worth, but based on $32 per sf--the low end of the asking rents in the building--the lease has an estimated value of $21.12 million. The quoted rental range in the building is $32 to $34 per rentable sf. With this first tenant, the building is 22% leased.
When the 2525 Ponce de Leon office building is completed, scheduled for the third quarter of 2004, Adorno & Yoss plans to move more than 200 employees there from its main office in Coconut Grove. Adorno & Yoss, which will be one of the city's biggest employers, will be the first major law firm in South Florida to relocate to Coral Gables. The 17-year-old Adorno & Yoss now has offices in five South Florida cities: Coconut Grove, Fort Lauderdale, Boca Raton, Naples and West Palm Beach.
"Hines is always looking to find users who are focused on efficiency and total occupancy costs as much as the image of the building," Hines senior vice president Michael Harrison tells GlobeSt.com. "In the case of Adorno & Yoss, we were able to demonstrate a significant space efficiency at 2525 Ponce de Leon, which, in turn, translated to significant cost savings (for Adorno & Yoss) over the term of their lease."
A spokeswoman for the developer says the firm can use less square footage because floor plans at 2525 Ponce de Leon are 10% to 15% more efficient than the firm's current space. The firm's clients include Fortune 500 and public companies, lending institutions, real estate developers, insurance organizations, government agencies and individuals.
The entire office building, which will sit on a 3.5-acre site, a full city block, on Ponce de Leon Boulevard, has an estimated hard construction cost of $37.5 million, based on the $150 per-sf going rate for hard construction cost of class A office buildings.
The architectural firm for the project was Smallwood Reynolds Stewart & Stewart of Atlanta.
In addition to this building, Hines is renovating a six-story, 100,000-sf office tower on a portion of the site, at 2511 Ponce de Leon. Improvements will include "significant life safety systems upgrades" and archaeological enhancements, the spokeswoman says.
Hines plans to incorporate the building into the mixed-use 2525 Ponce de Leon project, which also will include an eight-story, 103-unit luxury condominium tower next door. That building is set to break ground in the third quarter of this year and open in the third quarter of 2004. A company called Dayco is buying the site to develop the condo project, according to Hines.
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