Saturday, December 21st, 2024

Nuveen Sells 701 Brickell for $443M in Near-Record Miami Office Deal

By Julia Echikson October 8, 2024 5:08 pm

Nuveen CEO Bill Huffman and 701 Brickell. PHOTOS: Courtesy Nuveen; Courtesy Cushman & Wakefield

Nuveen Real Estate sold the 701 Brickell office building for $443 million to Morning Calm Management, marking the second-largest office transaction in Miami history, JLL announced.

The deal comes about eight years after Zara founder Amancio Ortega’s $540 million purchase of the Southeast Financial Center, a 55-story building in nearby Downtown Miami, which remains the market’s top office sale.

Since at least April, Nuveen had 701 Brickell on the market for $500 million. The New York-based investor purchased the 1.1 million-square-foot tower for $172 million in 2002, according to property records.

JLL’s Manny De Zárraga, Matt McCormack, Ike Ojala, Hermen Rodriguez and Mike McDonald brokered the recent sale.

Last month, hedge fund Elliott Management was under contract to buy the 32-story tower for about $450 million, Bloomberg reported. Besides Boca Raton-based Morning Calm Management, the new ownership includes an undisclosed partner.

Representatives for Morning Calm Management, Nuveen Real Estate, JLL and Elliott Management did not respond to requests for comment.

Some of the biggest names in finance — Apollo Global Management, BlackRock and Point72 Asset Management — have set up shop at 701 Brickell since the pandemic. Last year, Pura Vida, a popular fast-casual chain, opened a 5,000-square-foot cafe on the ground floor.

The property, which was completed 1986, also recently underwent a $30 million renovation.

Thanks to these high-profile, high-flying tenants, Brickell — Miami’s financial district — has been home to large office transactions, despite the rise of remote work. Last year, Nuveen bought the nearby 801 Brickell office for $250 million.

The asking rent for office space in the district remains the highest in the city, averaging at $93.73 per square foot per year, according to Avison Young.

Julia Echikson can be reached at jechikson@commercialobserver.com.

Keywords:
701 Brickell, Morning Calm Management, Nuveen Real Estate