Vizcaya Capital Lands $25M To Build Boutique Office In Miami’s Coconut Grove

Vizcaya Capital has secured a $25.2 million construction loan from City National Bank of Florida for a boutique office building in Coconut Grove, Miami, according to property records.

The five-story project, located at 2871 Oak Avenue, will offer 34,856 square feet of office space directly across from Arquitectonica’s headquarters, the architectural firm that also designed the building.

Vizcaya Capital, which manages funds for high-net-worth families from South America, plans to occupy part of the space. The firm purchased the 12,000-square-foot lot for $5 million in 2021, property records show. (A spokesperson for Vizcaya Capital did not immediately respond to a request for comment.)

Coconut Grove has become a sought-after location for office developments, attracting executives to its leafy, upscale setting. By the end of 2024, the area boasted one of Miami’s lowest office vacancy rates at 3.8% and one of the highest average asking rents at $71.15 per square foot, according to CBRE.

In 2021, Related Group, Miami’s largest condo developer, completed a 10-story office building a block east, which now serves as its headquarters. The building also houses 13th Floor Investments and the Knight Foundation. More recently, Michael Comras has added office components to the CocoWalk and The Canopy developments, breathing new life into these aging retail properties.

However, not all office projects have seen success. The seven-story 3480 Main Highway office building is set to be auctioned this month after its owner, CGI Merchant Group, defaulted on its mortgage despite the building being fully occupied, according to the South Florida Business Journal. Following interest rate hikes, CGI Merchant Group has faced foreclosure on several of its properties, including The Gabriel hotel in Downtown Miami and the former Trump Hotel in Washington, D.C.

 

Source: Commercial Observer

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