Adam Neumann’s Flow and an Israeli real estate firm bought the Aventura Corporate Center for $116.2 million.
Flow and Canada Global bought the three-building office complex at 20801, 20803 and 20807 Biscayne Boulevard in Aventura, according to Canada Global’s filing to the Tel Aviv Stock Exchange last week. Neumann contributed about $36 million through an $11 million equity infusion from Flow and $25 million he invested in Canada Global shares in September.
Miami-based Flow holds a 30 percent stake in the limited liability company created for the investment, and Canada Global holds the remaining 70 percent stake, according to the stock exchange filing. Publicly traded Canada Global is mainly owned by Assaf Tuchmair and Barak Rosen.
New York-based Stonecutter Capital Management sold the property, records show.
Aventura Corporate Center consists of 258,000 square feet of offices and 931 parking spaces on an 8.7-acre site, records show. It was completed in 1986 and an addition was built in 2007, according to real estate database Vizzda.
Vizzda records show the price on the deed is $111.7 million. The higher $116.2 million price listed in Canada Global’s filing is likely due to deal costs and possibly the price of furniture and fixtures.
The complex is 92 percent leased, generating $9 million annually in rent, Canada Global’s stock exchange filing says. The property also offers a redevelopment opportunity for a pair of 24-story residential towers with 495 units, combined, and 39,000 square feet of commercial space on a portion of the site.
Founded by Scott Zucker and Robert Kunzweiler, Stonecutter sold the property for 17 percent less than it had paid three years ago. In 2021, the firm dropped $140 million for the complex and borrowed $112.8 million from New York-based Ladder Capital Finance.
The seller was “under pressure” due to “non-compliance with the terms of the financing agreement,” according to Canada Global’s stock exchange filing. Flow put the property under contract in August and is in line to receive a 5 percent fee for bringing the deal to Canada Global.
Flow and Canada Global assumed the $80 million balance on the Ladder loan from Stonecutter, according to records.
“It was agreed that the purchase price of the property would be the total amount required for the seller to meet his obligations,” Canada Global’s stock exchange filing says.
Stonecutter and Flow didn’t immediately respond to a request for comment.
The deal comes as South Florida’s office market is feeling the sting from elevated interest rates, which have pushed down property values. Refinancing and capital restructurings also are difficult due to lenders’ and equity investors’ skittishness.
In other discounted deals, Starwood Capital Group sold a four-building Miramar office portfolio in April for $45 million, a 45 percent discount off its price nine years ago. Also, Galium Capital bought Lake Shore Plaza II at 1300 Concord Terrace in Sunrise for $17 million in September, about half the previous sale price nearly a decade ago.
Neumann, who co-founded and led WeWork but stepped down following its failed 2019 bid to go public, started residential real estate firm Flow in 2022. In South Florida, the startup launched condo sales last month for the 40-story, 466-unit Flow House at the Miami Worldcenter mixed-use complex in downtown Miami. The firm also owns the adjacent 444-unit Caoba apartment tower.
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