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South Florida

Starwood sells four office buildings in Miramar at a loss for $45M

YMP Real Estate Management, led by Moshe and Yaffa Popack, bought properties

Starwood Capital Sells Miramar Offices to YMP Real Estate

From left: Headshot of YMP Real Estate Management’s Moshe Popack and Yaffa Popack along with 3401 and 3601 Southwest 160th Avenue in Miramar (Getty, YMP Real Estate Management)

Starwood Capital Group sold an office portfolio in Miramar for $45 million, marking a 45 percent discount off its purchase price nine years ago. 

YMP Real Estate Management bought the pair of Miramar Centre I and III buildings at 3401 and 3601 Southwest 160th Avenue, as well as the pair of Huntington Centre I and II buildings at 2901 and 2801 Southwest 149th Avenue, according to the buyer’s news release. The purchase of the 373,200-square-foot portfolio breaks down to $120 per square foot. 

YMP bought a 72 percent interest in the portfolio and Nathan Pollack, through three affiliates, bought the remaining stake, according to real estate database Vizzda. The buyers took out a $31 million loan, which matures in 2029, from Banco do Brasil Americas.

The discounted sale comes amid a double whammy of suppressed commercial real estate values and elevated interest rates. Although real estate players have touted South Florida as an office market haven due to an influx of out-of-state businesses, data shows that the tri-county region hasn’t been spared from rising vacancies and an uptick in sublease availability. 

Miami Beach-based Starwood Capital bought the four-buildings for $82 million, combined, in 2015, records show. Starwood is led by CEO Barry Sternlicht.

The company didn’t immediately respond to a request for comment. 

The Miramar portfolio is 79 percent leased, according to YMP’s news release. Tenants include Humana, shipping company Maersk and packaging company Amcor. 

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Led by Moshe and Yaffa Popack, YMP says in the release it plans to “take advantage” of market headwinds to expand its portfolio. 

The Coconut Creek-based firm is a commercial real estate investor and manager, its website shows. YMP’s portfolio spans six commercial properties in Florida and nine in the U.S. including about 4,000 multifamily units and three assisted living facilities, according to the release. 

In 2019, YMP dropped $29.3 million for the Lakeshore Business Center, consisting of four two-story buildings at 5200 and 5200 Northwest 33rd Avenue and 3201-3125 West Commercial Boulevard in Fort Lauderdale’s Cypress Creek area. 

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In another recent discounted sale, New York-based Shire Realty sold the three-story mixed-use building at 826 Collins Avenue in Miami Beach last year for $5 million, or 41 percent less than its purchase price a decade ago. Distressed real estate investor ArcPe was the buyer. 

Last year, investors Arvind Reddy and Krishna Persaud sold the 124-unit Amberstone Apartments at  470-530 East McNab Road in Pompano Beach for $24.1 million, an 8 percent discount from their purchase price a year earlier. 

This month, Robert Rivani’s Black Lion bought the gound lease for the six-story The Lincoln office building with ground-floor retail at 1691 Michigan Avenue in Miami Beach for $62.5 million. The deal marked a 42 percent discount off New York-based Clarion Partners’ purchase price seven years ago. 

Tags
Barry SternlichtBroward CountyDistressed PropertiesMiramarOfficesSouth Florida Office MarketStarwood CapitalStarwood Capital Group