Venezuelan Landlord Forced To Sell Brickell Office Building
Written by Yeleny Suarez on December 16, 2004
By Yeleny Suarez
New regulations in Venezuela are forcing the owners of 1101 Brickell Ave. to sell the two-office office building.
The owner, Venezuelan bank Banco de Desarollo Economico y Social dDe Venezuela, or BANDES, has put the 475,000-square-foot property on the market.
"The bank is currently on a timeline and has approximately three or four months to sell," said Eddy Dominguez, a broker at VR Business Brokers in Coral Gables, who is taking inquiries about the building.
A new law in Venezuela is limiting businesses to invest only within their fields of expertise, he said.
The 11-story south tower was opened in 1964 and renovated in 1993. It has a vacancy rate of 33%. The north tower, at 19 floors, was built in 1985 and has a vacancy rate of 11%.
"The sale will be conducted through a public bid to keep it as transparent as possible,"
said Mr. Dominguez.
The bank’s committee must receive all bids by Feb. 1, according to documents from the broker. The bidding process consists of two parts – one with banking and financial information and the other with an offering bid.
All submitted proposals for the purchase must include a $100,000 deposit, according to the documents. The building will not be sold if the reserve price of $37.8 million is not met.
"The highest qualified bidder wins," says Mr. Dominguez.
Jack Lowell, vice chairman of Codina Realty Services, said BANDES should not have a problem selling the property.
"All office buildings for sale on Brickell attract a great amount of interest," said Mr. Lowell. "There is a lot of money available, interest rates are low and demand is strong. Miami is enjoying great popularity."
Mr. Lowell said he thinks the building will sell for more than $100 a square foot. He said he sees banks and regional investors as potential buyers.
Hank Bush, principal at Atlanta-based Equiproperty, said he sees good potential for the building and thinks 1101 Brickell will perform well as a lease building.
"They won’t have any difficulty selling that asset. The market is performing very well,"
said Mr. Bush, who recently acquired 1000 Brickell for $30 million and said he is interested in the public offering.
Despite its prominent location, Lance Benson, office brokerage associate for Cushman & Wakefield, said it is a Class B building. "The lobby could use some renovating," said Mr. Benson. "The building has been kind of sitting there with not much exposure on the marketplace."
In spite of the lower rating for the building, Mr. Benson said buyers can be huge real estate conglomerates from New York or Boston or local investors.
"The fact is," he said, "there is so much capital in the marketplace, the bank should have an adequate amount of bidders."