Brickell Office Building To Be Redeveloped
By Leslie Kraft
Investors who include principals of Fortune International Realty are buying a Brickell Avenue building for $15.1 million to redevelop it into office-condominiums and residences, brokers said.
The 95,000-square-foot office building at 1110 Brickell is attractive to the buyer because existing zoning allows at least 400,000 square feet of development – or 300,000 square feet beyond the existing tower, said officials from CB Richard Ellis, a firm representing the seller.
"The buyer has long-term plans to develop a new high-rise building over the portion of the site where the existing parking structure sits," said Christian R. Lee, of CB Richard Ellis. "Other nearby sites that have gone through [a major-use permitting process] demonstrated that there is the potential for an even greater development density."
The price – about $159 per square foot – shows investors will pay a premium for under-developed buildings along the Brickell corridor, said Charles J. Foschini, of L.J. Melody & Co., also representing America’s Capital Partners, the sellers.
Fortune Real Estate, the property development arm of Brickell-based Fortune International Realty, did not use brokers in the transaction. Edgardo Defortuna, Fortune president and CEO, was not available Tuesday for comment.
"The deal would have been done for a few million dollars less if it had just been based on the building’s current revenue stream – there are about 30 smaller entrepreneur tenants," Mr. Foschini said. "But the buyers saw the development potential for a tower of office condominiums and a new tower with residences. This was a great opportunity for private investors to own a small building on Brickell. Most of the buildings on Brickell are owned by institutions."