South Florida bank location sold for $3.2M. That’s $1 million off the asking price
How has COVID affected the local commercial market? One transaction tells the market story.
Pre-pandemic, Chicago-based First American Bank agreed to buy a former City National Bank location at SW 97th Avenue and Bird Road for $4.2 million. After coronavirus arrived, the buyer re-negotiated.
The deal on the 4,278-square-foot former City National Bank location on the 24,650-square-foot corner lot closed at $3.2 million in May, said Bill Kerdyk, Jr., president and chief executive officer of Kerdyk Real Estate, who brokered the transaction. It was an all-cash deal.
“Cash is a big plus to get deals done quickly. At that time, there were not a lot of buyers looking,” Kerdyk said. “It’s important to the seller that they have a viable buyer.”
.jpg)
The building last sold in 2018 for $3.5 million.
Family-owned First American Bank has six South Florida locations, part of a 60-branch nationwide network. It opened its first location in Coral Gables 15 years ago, then acquired five former Continental Bank locations in October 2019.
The bank focuses on lending and wealth management services for small, family-owned business owners, said Brian Hagan, First American Bank’s Florida market president. Many clients are manufacturers and distributors exporting to Latin America.
The Bird Road location will replace an existing branch at Florida International University College of Engineering and Computing at 10555 West Flagler Street. The high-traffic Bird Road location brings greater visibility and more parking.
The pandemic may have dampened commercial prices — but not interest, Kerdyk said.
“There are buyers out there. The question is the pricing. Buyers are looking for a good opportunity,” Kerdyk said. “As long as we have sunshine and no state income tax, it will always be a good real estate market.”
This story was originally published June 9, 2020 at 7:00 AM.
