Related Group acquired Rivergate Plaza and Rivergate West in Miami, FL for $104 million, or about $344 per square foot, from CWCapital Asset Management LLC, a subsidiary of CW Financial Services LLC, as special servicer.
The two office buildings, located at 444 Brickell Ave. and 77-79 SE 5th St. in the heart of Miami's Brickell submarket, total 200,368 and 101,902 square feet, respectively. The larger building stands at 10 stories on 1.8 acres and was built in 1973, while the smaller is four stories tall on 2.2 acres and was built in 1976. Both properties were renovated in the mid-1990s.
The distressed asset transferred to CWCAM in 2009 after the borrower was unable to meet debt service due to decreased cash flow from the property, with occupancy at the time at just 75 percent and an additional 20 percent expiring in 2012. The trust recognized full recovery from this sale, with the properties appraised at $32.5 million in 2010.
"This transaction underscores the depth of our experience in servicing distressed properties and our ability to execute and react quickly to changing market conditions," said David Iannarone, president of CW Financial Services LLC. "Our team identified and executed an asset level strategy that elevated the attractiveness and value of the property while conducting a marketing campaign that leveraged rising real estate prices in downtown Miami. We are confident that the timing is right and that we have maintained our principal goal, which has always been maximizing value on behalf of the bondholders."
Reportedly, both parties handled the direct sale in-house.
Please see CoStar COMPS #2901975 for additional information on this transaction.