Two Miami-Area Offices Sell for Over $80 Million
In Broward and Palm Beach counties, situated next to sunny Miami, a real estate firm has paid upwards of $83 million for two top-of-the-line office properties.
The company, Ivy Realty, acquired both Meridian Office Center and the 220k sq. ft. Tower 101. These buildings will join Ivy’s 6 million sq. ft. of properties. The majority of their holdings are in South Florida, but a handful of their investments span the nation, branching into other categories like industrial and retail. The Meridian building is already fully leased, which will save Ivy the trouble of securing new tenants for the sizable space.
According to Ivy co-CEO Rusty Warren, the company made a wise move in investing in the South Florida market five years prior. In making purchases while the market was down, Ivy was able to secure buildings that have since paid off. They already own the 400k+ sq. ft. Deerfield Corporate Park, located in Broward county, alongside their recently-purchased Tower 101. If all goes well, these new investments will pay off similarly.
Part of the company’s overarching strategy is to invest in what locals call the “NoBro” office market, which is developing north of Broward blvd. With their purchase of Tower 101, Ivy owns two of the three most prized properties in NoBro.
Unlike downtown Fort Lauderdale, the NoBro district boasts lower rents and comparable amenities. It’s shaping up to be Broward county’s best bet for quality office spaces that are relatively easy on the wallet. Office rent is NoBro currently averages $22 per sq. ft., compared to $35 in Fort Lauderdale.
With Tower 101 already partially leased, it will only be a matter of time before the building hits full occupancy and Ivy starts collecting cash. Investing in a growing neighborhood is always a risk—there’s no guarantee that growth will continue at the same rate—but if their previous NoBro investment is any indication, Ivy will have profits to look forward to in the coming years.