Before the sale, National Office Partners LP (NOP) owned the building. NOP is a partnership of the California Public Employees' Retirement System (CalPERS), a public pension fund; and Hines, an international real estate company.
The sale price equates to approximately $148.48 per sf for the building's 585,916 net rentable sf. As part of the sale, Hines has been retained as the project's property manager and leasing agent.
"Given the current capital markets and interest rate environments, the sale of Bank of America Tower was a well-timed disposition for National Office Partners," according to Michael Harrison, senior vice president of Hines. "Bank of America (Tower) will continue to be a key component of Hines' South Florida strategy."
The tower is 88% leased. Tenants include Bank of America; Carlton Fields; UBS Paine Webber; Fowler, White, Burnett, Hurley, Banick & Strickroot PA; and McKinsey & Co. Inc.
"We are pleased to acquire this unique trophy building," says Olaf Fortmann, vice president of Blue Capital Investments Inc,. who's responsible for acquisitions and management of the company's U.S. real estate. "The continuing growth indicators of Florida, the strength of the Miami office market and the quality of this asset were compelling reasons for us to make this investment."
The tower overlooks Biscayne Bay and downtown Miami. The building, whose architect was I.M. Pei of Pei Cobb Freed & Partners, is known for its changing exterior lighting palette to correspond with holidays, sporting events and other occasions, such as red, white and blue lighting for the Fourth of July.
The building sits on a 10-story garage and features an 11th-story Sky Lobby Terrace, a 150-seat auditorium, and retail and banking facilities. The tower is connected to a Metro Rail Station and the Hyatt Regency Miami.
With Blue Capital Investments' recent acquisition of 2300 N. Street N.W. in Washington, D.C., the Bank of America Tower will be put in the firm's new East Coast office fund, Fortmann said. "This portfolio, which will eventually include New York City and possibly Boston and Philadelphia, will offer our investors a beneficial mixture of stabilized income, upside potential and diversification," he said.
Lacy Ltd. advised Blue Capital in the investment. Eastdil Realty Co. represented NOP in the deal.
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