Property Updated on Wednesday, January 5, 2022 by Lior Lustig
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2000 Ponce, a 44,862 square foot office building with a structured parking garage built in 2001, represents a unique opportunity to acquire an off-market urban walkable boutique office at a massively discounted basis relative to replacement cost and most other recently traded comps in urban South Florida locations.
2000 Ponce Office
Gross Square Footage
Leasable Square Footage
2000 Ponce de Leon Blvd, Coral Gables, FL 33134
104 (all in a structured parking garage)
0.5 Acres (21,518.8 sf)
8 (two tenant elevators and one service elevator)
$14.05 million ($312 psf)
Capex and TILC
$5.16 million ($115 psf)
$26.70 million ($595 psf)
Exit Stabilized NOI
Exit Stabilized Cap Rate
3 to 5 years
End of January 2022
Nadlan Invest Partnersisacquiringan8- story boutique office in an off-markettransaction
The current owner is a high-net-worth Latin American family that has owned this building since its completion in 2001
The current owner is not a real estate operator, and the building offers a variety of lease-up and value enhancement opportunities
The building was built to a high-quality standard including a high-end spacious structured parking garage with a replacement cost estimated at double to Nadlan Invest Partners purchase price
Recent sales comps of a boutique urban walkable office buildings in South Florida trade around ~$600 psf on average versus Nadlan Invest Partners going purchase price basis of about ~$300 psf
$1.735 million at 6.5% stabilized cap rate results in a gross stabilized value of $26.7 million
Assets routinely trade in Coral Gables for 4.5% to 5.5% cap rate given the projected WALT and asset quality at the time
At 4.5% cap rate, stabilized value would be ~$38.5 million or $859 psf and at 5.5% cap rate stabilized value would be ~$31.5 million or $703 psf
Nadlan Invest Partners conservatively underwrote the high end of Tenant Improvement packages and Leasing Commission packages totaling ~$5.16 million
Nadlan Invest Partners underwrote an extensive Capex, Tenant ImprovementandLeasing Commissionbudget
Deferred Maintenance: $78,750
Value Add Common Area: $759,375
Tenant Improvements: $3,302,766
Leasing Commissions: $1,019,900
2000 Ponce Professional building conveniently located at 2000 Ponce De Leon. Conveniently located on the corner of Navarre and Ponce directly on the Ponce Trolley line. . The 2000 Ponce Building has been exceptionally well maintained and provides a very professional curb appeal. The interior has a combination of private offices and open floor space allowing for a range of uses and easy configuration. The property is centrally located in the Coral Gables CBD within walking distance to Miracle Mile and downtown Coral Gables.
Beautiful expanded terraces located throughout offices
Fully secured building
Card key access after hours
Three levels of covered parking
Tenant controlled HVAC, 6 zones per floor
Fiber optics with 100 telephone lines per floor
Minutes to Downtown Miami and Miami International Airport
Nadlan Invest Partners has secured the opportunity to acquire 2000 Ponce, a value-add boutique 44,862 square foot office building located in the heart of Coral Gables, FL one of the most desirable and prestigious communities in the Southeastern United States. The irreplaceable location offers an exceptional walkable amenity base in Miracle Mile, one of South Florida’s most sought-after shopping and dining destinations featuring world-renowned restaurants, boutique shops, and art galleries in a lushly landscaped environment of tree-lined streets. The City of Coral Gables is nationally recognized for its outstanding demographics, abundance of new to market and long-standing employment bases, and for its access to tremendous executive housing and lifestyle amenities.
Nadlan Invest Partners is under contract to acquire the asset off-market for $14,050,000 less $200,000 closing credit ($13,850,000 net), a significant discount to replacement cost (~46%) and at a highly attractive basis of $309 PSF, well below comparable sales in similar exceptional locations.
Current occupancy includes 4,300 SF of ground floor retail space along with an executive office operation in floors 5-6 with ~30 executive tenants. Sponsorship’s business plan is the following:
Nadlan Invest Partners Capital Management, LLC will execute a lease to occupy floors 6 and 7 along with the rooftop amenity space for a total of 17,145 SF (38% of the building).
Consolidate the executive office tenants into the 5th floor and continue the operation with improved management standards. Several tenants have indicated their desire to expand which will provide the potential for organic traditional lease-up throughout the building.
Lease-up the remainder of the vacancy with a focused strategy. Current ownership is a foreign HNW individual with minimal operational commercial real estate experience that has owned the building for last 20 years since it was built.
Significant upside by repositioning the ground floor space for a prospective lease-up. An example being a restaurant or bank branch tenant.
Nadlan Invest Partners significant growth, lease commitment, and known intentions to expand provides the transaction an incoming owner user with aligned incentives to add value, stabilize the asset, and takeout the bridge debt with permanent fixed-rate financing.
Nadlan Invest Partners had the building remeasured as part of due diligence to latest 2017 BOMA leasable area standards and all underwritten leasing is completed based on BOMA.