Hollo, chairman and president of Florida East Coast Realty, reportedly paid $35 million for the buildings, roughly half of what Africa-Israel acquired them for in 2005. FECR would not confirm the purchase price, though it did say it funded the acquisition without any third-party financing.
The discounted deal is the largest office sale in Miami-Dade County so far this year. The class B property is assessed at $55.1 million and a $62-million mortgage obtained from Anglo Irish Bank by an Africa-Israel affiliate was set to mature in June, according to Daily Business Review, an Incisive Media publication.
The additional $12-million investment to enhance and modernize the buildings, which total 488,449 square feet, will include mechanical repairs and upgrades along with additional space for retail and a signature restaurant. All 10 elevator banks will be upgraded, air-conditioning and lighting systems will be made more energy efficient, and bathrooms will be modernized with new fixtures and toilets that use less water.
"We plan to significantly invest in the beautification and renovation of 1101 Brickell to improve conditions for our current tenants and to attract businesses interested in an attractive office building in a prime location on Brickell Avenue," says Jerome Hollo, managing member of FECR. New trees and landscaping will be added to the property, he says.
FECR announced in May that it will build the 252-room Sonesta Mikado hotel overlooking Biscayne Bay. The 40-story structure, designed in a style reminiscent of classic Japanese buildings, is scheduled to open in the latter half of 2011.
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