Brokers negotiate $5.29 million sale of Coral Gables medical building

01/11/2012

Dealmakers: Adam Greenberg and Michael Lapointe

The Deal: The pair brokered the $5.29 million sale of a 14,700-square-foot medical building at 3280 Ponce de Leon Blvd., Coral Gables.

 

Miami-based Orion Venture II Ponce sold the two-story building to Miami Beach-based Brickell 13 Ponce on Dec. 15.

Details: Orion Venture, led by Joseph Sanz and Barry Brant, was asking $6.8 million for the property when Greenberg and Lapointe approached the seller on behalf of Brickell 13, managed by Abbey Berkowitz. The building is fully leased to Flamingo Park Kidney Center, a subsidiary of DaVita Dialysis Center.

Greenberg said negotiating the price down was one of the biggest challenges because it required clarifying the lease on the building.

“Some provisions were not very clear and there was some cash flow that we were not sure how to allocate on the lease,” he said. “It took a lot of negotiating to figure out what the actual cash flow of the asset was.”

Greenberg said Brickell 13 spent months looking for income producing properties with a triple or double net lease in place, in a good location and with good parking. The problem was many other investors are pursuing the same type of assets and prices are skyrocketing.

“The net lease market in South Florida has been so bid up that the yield is so low,” he said. “We looked at properties that we thought were way over priced and yet there were multiple full-price offers on them.”

Greenberg said the Coral Gables building had all the characteristics that the buyer had been looking for, including a tenant with more than four years left on its lease with an option for renewal. Yet, that came at a price.

“So we gave up a little of yield on it,” he said. “We would have liked it to have been above a 7 percent cap but we were actually just under a 7 percent cap.”

Background: Greenberg and Lapointe are commercial brokers with BayBridge Real Estate Group in Miami.

 

For the FULL article from Miami Daily Business Review, please click HERE.

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