KKR, Parkway Venture Acquires Miami Office Tower

MIAMI—A joint venture of KKR and Parkway Property Investments has acquired the 30-story office tower at 1111 Brickell.

The joint venture purchased the 522,000-square-foot office building from New Jersey-based PGIM Real Estate. No purchase price was disclosed. Square Mile Capital Management LLC of New York City originated the financing for the deal.

PGIM acquired the property, which was built in 2000, for $184 million in 2013.

The property is known as the Sabadell Financial Center. A published report in the Real Deal, cites sources as putting the purchase price by KKR/Parkway at $250 million.

The property’s major tenants include: Sabadell United Bank, Telefonica USA, Ferragamo, Hunton & Williams, Baker & McKenzie, Regus and Barclays. The office building has earned a Gold certification from the U.S. Green Building Council.

CBRE’s vice chairman Christian Lee, SVP José Lobón, VP Amy Julian and senior financial analyst Andrew Chilgren brokered the transaction.

KKR and Parkway, intend to complete what they term as a “comprehensive renovation to transform the building into a modern work environment centered on hospitality, community and wellness.”

“The exciting renovation includes an overhaul of the building lobby and entrance, upgrades to the corridors and restrooms, improvements to the 10^th floor amenity deck and the addition of a state-of-the-art fitness center,” says Lobón.

“Many lenders pursued this trophy asset in the prestigious Brickell submarket. Square Mile’s aggressive pricing, term and structure will allow the sponsor to execute their extensive renovation plan and add to the high-quality tenant base that currently resides at the property,” adds CBRE’s Julian.

New York City-based KKR is funding the investment primarily from KKR Real Estate Partners Americas II, the company states in its press announcement.