Real Estate News

Coral Gables office tower sells for $57.5 million, doubling 2005 price

The office tower at 2121 Ponce de Leon Blvd., Coral Gables has sold for $57.5 million.
The office tower at 2121 Ponce de Leon Blvd., Coral Gables has sold for $57.5 million.

An office tower in Coral Gables has sold for $57.5 million, the largest commercial real-estate transaction in the city this year.

The 164,848-square-foot building at 2121 Ponce de Leon Blvd. last sold for $27.1 million in 2005. Tenants include accounting firm Goldstein Schechter, Fox Latin America, Valley National Bank, the Consulate of Barbados and buffet restaurant POC.

The deal was announced Monday by sellers Greenstreet Partners and CREC. The buyer is an affiliate of Zurich North America, part of Switzerland-based Zurich Insurance Group. Property records weren’t yet available.

South Florida’s luxury residential market may be slowing, but office and retail are still hot.

Coral Gables has a relatively low office vacancy rate of 9.5 percent, according to research by commercial real-estate brokerage CBRE. The Gables is the second-largest suburban office market in Miami-Dade County after the Airport/Doral area.

Foreign investors have driven office market activity in South Florida, including the $220 million sale of the iconic Miami Tower to a Japanese group earlier this year. Despite a strengthening dollar and faltering economies in Latin America, CBRE said in a recent report that “declining vacancies, increasing rental rates and positive job growth are indications that the [office] market is still strong and continuing to drive the investment market in 2016.”