DWS Group’s two-building office complex in Coral Gables hit the market with a target price of about $125 million, The Real Deal has learned.
The listing follows the German asset manager and one of its subsidiaries selling a pair of office properties in downtown Fort Lauderdale earlier this year.
DWS wants to sell The Alhambra, consisting of the 14-story, 232,100-square-foot Alhambra Plaza building at 2 Alhambra Plaza and the seven-story, 94,300-square-foot Alhambra West building at 95 Merrick Way, according to a JLL listing memo. The document does not include the asking price, which was shared with TRD by a source.
Hermen Rodriguez and Matt McCormack are part of the JLL team marketing the property. Neither returned requests for comment, and DWS declined to comment.
The Alhambra sits on a roughly 3-acre site spanning a full city block, with the two office buildings separated by the Hyatt Regency Coral Gables Hotel. The hotel isn’t listed for sale.
Alhambra Plaza, completed in 1987, is 89 percent occupied; and Alhambra West, completed in 1961, is 83 percent occupied, JLL’s listing memo shows. Both buildings were renovated in 2018.
Tenants include ABH Air Conditioning, Disney Latin America Media, Lisinski Law Firm and Bella Bridesmaids Miami. This year, Transwestern Real Estate Services moved its office to a 4,500-square-foot space at The Alhambra from the Miami Tower in downtown Miami.
DWS bought The Alhambra for $118.5 million in 2015, records show. DWS, which at the time was Deutsche Asset & Wealth Management, purchased the asset through one of its funds on behalf of an overseas institutional investor.
DWS is led by CEO Stefan Hoops, with Hepsen Uzcan CEO of DWS Americas and W. Todd Henderson head of real estate for the Americas, according to the firm’s website.
The asset manager appears to be divesting its South Florida office properties. In downtown Fort Lauderdale, it sold the Las Olas Centre I & II office towers at 350 and 450 East Las Olas Boulevard for $208 million in February, according to records. The next day, DWS subsidiary Rreef Property Trust, through an affiliate, sold the Bank of America Plaza at Las Olas City Centre at 401 East Las Olas Boulevard in downtown Fort Lauderdale for $221 million.
South Florida office investment sales have continued, despite elevated interest rates and slower new-to-market company leasing compared with the pandemic boom.
Office landlords that want to trim their nationwide exposure are opting to sell their South Florida properties. The tri-county region still has rising average asking rents and declining average occupancy, so a landlord can at least break even and in some cases turn a profit by selling an asset in South Florida, as opposed to elsewhere in the U.S. where the market is struggling, experts have said.
In Brickell, Spanish billionaire Amancio Ortega’s Ponte Gadea is buying the Sabadell Financial Center at 1111 Brickell Avenue in Miami for about $275 million. KKR and Parkway are the sellers.
Last month, Aventura-based Triarch Capital Group sold the Pembroke Pines Medical Plaza at 400, 500, 600 and 700 North Hiatus Road in Pembroke Pines to New York Life Real Estate Investors for $38.3 million.
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