Developer Offering Pieces of Miami Complex
A Hong Kong developer is shopping the office and hotel components of an upscale mixed-use complex in Miami’s Brickell submarket that together could fetch bids of around $370 million.
Swire Properties is separately marketing 263,000 square feet of office space and the 352-room East Hotel, both part of the 4.9 million-sf Brickell City Centre. Bids on the office property are expected to come in around $170 million, or $649/sf. The hotel could fetch $202 million, or $574,000/room. CBRE has the listings.
Swire spent $1 billion developing Brickell City Centre, which began opening in 2015. In addition to the offices and hotel, the complex encompasses two luxury condominium towers and 500,000 sf of retail and entertainment space that aren’t being offered.
The office space, split between two buildings at Two & Three Brickell City Centre, is 99% occupied by seven tenants with a weighted average remaining lease term of 10 years. The largest tenant, law firm Akerman, occupies 42% of the space. WeWork leases 30%. Other tenants include KPMG and McKinsey & Co. The offices have high-end lobbies and water views.
The average occupancy rate for Class-A properties in Brickell is 89%. Asking rents for new Class-A space average $73/sf.
The hotel is one of only three in the world to fly the East flag, a Swire brand. But it is being offered unencumbered by brand or management contracts, which is catching the attention of luxury hotel operators interested in establishing a presence in Miami.
While financials for the property were unavailable, luxury hotels in the Miami/Hialeah market were 72.1% occupied last year, up slightly from 71.8% the year before, according to STR. Rates averaged $378.86/room, down half a percentage point from 2018. That left revenue roughly flat at $273.30/room.
The 40-story hotel encompasses 255 standard rooms, eight suites and 89 one-to-three bedroom residences for longer-term stays. There’s 20,000 sf of meeting and event space, a pool, a fitness center and a restaurant/bar.
Brickell City Centre’s office, hotel and residential components all are connected to the complex’s four levels of high-end shops, restaurants and entertainment venues. The retail space is anchored by a 107,000-sf Saks Fifth Avenue and a CMX Cinema.
The property is adjacent to a Metromover light-rail station connecting to other parts of Miami.