200 SE 1st Street
Brickman acquired the leasehold and fee interests in 200 SE 1st for $33.85 million ($240 per square foot) in February 2016. The Property is a 12 story office and data center asset totaling 141,252 square feet located in the Downtown submarket of Miami, FL. The Property was built in 1958 and underwent renovations in 2014-2015. A perpetual easement allows for the use of 250 parking spaces in an adjacent garage providing a parking ratio of 1.8 / 1,000 per rentable square feet. The Property also has license agreements in-place for billboard signage, data center connectivity access, and rooftop telecom.
Property type: Office
Investment type: Equity
Size: 141,252 SF
Investment date: February 2016
200 SE 1st Street is located in the supply-constrained office market of Downtown Miami, where Class B office development is not currently economically feasible given land prices and construction costs estimated to be well-above $500 per square foot. The current inventory of office space in Downtown Miami is expected to remain the same or shrink in coming years as existing office buildings are converted for residential or hospitality uses. This dynamic is expected to drive rent growth for class B office product in the coming years. In addition, Brickman instituted a capital improvement plan upon acquisition to overhaul substantially all base building systems to futher improve the asset's use.
Brickman’s purchase price of $33.85 million ($240 per square foot) represents an attractive basis in a highly competitive gateway market. This transaction represented a 49% discount to sales in the market at the time of acquisition.