According to a Marcus & Millichap second-quarter report, 1.8 million sf of office condos were brought online in Miami-Dade County over the last 12 months, with more than 500,000 sf of for-sale space still being marketed, some as for-lease product. "Right now office condo market activity is very limited and the only real spots you're seeing any activity is within the medical office sector," says Alex Zylberglait, associate director of the national office and industrial properties group with Marcus & Millichap. "Even then, only under certain conditions that make sense for the buyers of the units, if they can even get financing. So much of this market was driven by the availability of capital which is now not as prevalent, and transaction activity has decreased significantly."

Lumar says two floors of Town Center One are dedicated to medical users, and adds that Dayco is confident in the project because of the strong demographics around its location. "This is an evolving area that in the future will be very vibrant," he tells GlobeSt.com. "There are 100,000 households within five miles of the property with an average annual income of $100,000. For that reason, value is likely to remain high and improve."

Although many office condo projects have hit a rough patch this year and have turned into rentals, Dayco has seen success with two of its previous projects. The 55 Merrick building in Coral Gables was entirely sold in January and 1600 Ponce de Leon, also in Coral Gables, is 90% sold and will be completed on Oct. 10. Most of the owners at both of the buildings are local Coral Gables businesses that have purchased an average of 1,200 sf, says Lumar.