Beach Office Building Sold for $17.5 Million, Less Than It Was Worth Three Years Ago in Florida

Photo byLoopNet

There’s a new buzz in Miami Beach, and it’s about an office building that just changed hands for $17.5 million—definitely not the price tag you’d expect in this thriving market!

The building, located at 801 W. 41st Street, was sold by FG 801 Arthur Godfrey Owner LLC, which is part of the Fifteen Group, to Leah 801 LLC. The buyer, Igal Haimov, also runs Haimov Jewelers in Miami Beach. So, who’s financing this deal? Vernon Capital Financing stepped in with an $11.5 million mortgage, set to mature in just a year.

Now, here’s the kicker: this sale represents quite a loss for the seller. Just three years ago, the building went for $22 million when Terranova Corp. sold its headquarters and moved to Coral Gables. Back then, it was a different story, and Fifteen Group had even kicked off some interior renovations this year to spruce things up. So, what gives?

The office building spans 51,806 square feet and sits on a 22,135-square-foot lot that dates back to 1969. It’s a prime location, just a few blocks from Mount Sinai Medical Center. While office leasing rates in Miami Beach have generally been on the rise—thanks in part to an influx of wealthy individuals relocating their businesses to the area—not every building is benefiting from this trend.

For instance, at 401 Arthur Godfrey Road, a nearby office space, there’s a whopping 34,000 square feet still available for lease. It seems like the demand isn’t consistent across the board, leaving some properties struggling to find new tenants.

So, what does this mean for the future of Miami Beach’s office market? It’s a mixed bag. While some properties are thriving, others are facing challenges in attracting tenants. As the landscape evolves, it’ll be interesting to see how the market adapts and what opportunities might arise for savvy investors. Stay tuned!