Miami office tower goes up for sale for more than US$500 million

NUVEEN Real Estate is seeking to sell a Miami office building located in the heart of the Brickell neighbourhood with tenants including Bank of America and Apollo Global Management.

The firm has hired Jones Lang LaSalle to seek buyers for 701 Brickell, a property that’s expected to fetch more than US$500 million, according to the brokerage. The building, built in 1986 but renovated since 2021, also has offices for BlackRock and Point72 Asset Management.

The Brickell neighbourhood has boomed as a key spot for companies building out a South Florida presence. Firms including Thoma Bravo and JPMorgan Chase & Co have leased offices in the area. Nuveen’s tower is located near a waterfront site that Citadel acquired in 2022 to build its corporate headquarters.

Office owners in the US have struggled as vacancies rise with the boom in remote work. Borrowing costs have also climbed, putting pressure on valuations. But newer or renovated buildings have remained in high demand.

Miami’s office market has outperformed other spots in the US after the pandemic, as a surge of tech and finance firms relocated or opened outposts in the area, JLL said.

Nuveen has spent more than US$30 million renovating the Miami tower since 2021. The nearly 700,000-square-foot (65,000-square-metres) office building has more than 90 per cent occupancy and high rent growth, according to JLL. BLOOMBERG