Spanish billionaire Amancio Ortega has finalized the purchase of the Sabadell Financial Center in Miami’s Brickell district for $274.4 million, making it the largest office sale in South Florida so far this year. The transaction was completed by Ortega’s Ponte Gadea family investment office, which acquired the 30-story property at 1111 Brickell Avenue from sellers KKR and Parkway. Public records and data from real estate platform Vizzda indicate that no mortgage was recorded for the deal, suggesting it was an all-cash purchase.
Chris Lee and Sean Kelly of CBRE acted as representatives for the sellers during the transaction.
The Sabadell Financial Center spans 524,000 square feet and sits on a 1.8-acre site as part of a mixed-use development that also includes the neighboring JW Marriott Miami hotel. The building, developed by MDM Group and Rilea Group, opened in 2000. Its tenant roster features Industrious, Tibint, Kennedys Law, Law Offices of Wolf & Pravato, and Northmarq.
KKR and Parkway originally bought the tower for $248.5 million in 2018. KKR is led by co-CEOs Joseph Bae and Scott Nuttall; Parkway is headed by James Heistand.
The acquisition comes amid a slowdown in South Florida’s office investment market compared to pandemic-era activity when lower interest rates drew many out-of-state firms to lease large spaces. As interest rates have risen over the past two years, lenders have become more cautious and deal volumes have declined. According to CBRE data, Miami-Dade County saw office sales volume reach $2.1 billion in 2021 before dropping to $1.1 billion in 2022 and further down to $700 million last year; however, sales increased again last year to $1.4 billion with $293 million transacted through mid-September this year.
Ortega’s purchase exceeds other major South Florida office transactions this year: Bradford Allen Investment Advisors’ acquisition of Las Olas Centre I & II for $208 million in February and Lone Star Funds’ partnership buyout of Bank of America Plaza at Las Olas City Centre for $221 million.
Market observers note that current buyers are often using cash rather than financing due to high borrowing costs—a strategy employed by Ortega as he continues expanding his global real estate holdings through Ponte Gadea using profits from his Inditex retail empire (including Zara). According to Forbes, Ortega ranks as the world’s twelfth richest person with an estimated net worth of $127.1 billion.
Bloomberg reported that Ortega is expected to receive record dividends totaling $3.6 billion from his retail businesses this year—funds he may be investing into properties partly as a hedge against Spain’s wealth tax obligations.
A real estate expert told The Real Deal in July: “Purchasing all cash also allows for a reprieve on prices because sellers are more interested in the certainty of closing over getting the highest price in the current financing climate.”
Ponte Gadea has made several notable acquisitions recently: it bought Atlas Plaza retail building in Miami Design District for $110 million last month; acquired Veneto Las Olas apartment tower in Fort Lauderdale for $165 million earlier this summer; purchased Paris’ Hotel Banke for about $113 million; secured an eight-story Parisian office-retail asset at Rue Saint-Honoré for roughly €170 million ($197.3 million); obtained a Barcelona office building housing publisher Planeta headquarters for $284 million; and reportedly agreed to acquire a minority stake in Brookfield Asset Management’s PD Ports business in Britain.
