Crescent Real Estate has acquired the Ryder Colonnade office building in Coral Gables for $70.4 million, representing a 13 percent decrease from its previous sale price more than ten years ago.
The Fort Worth, Texas-based company purchased the 11-story property at 169 Coral Way from AEW Capital Management, according to public records. Crescent secured a $67.9 million loan from FS Credit Originator, managed by Rialto Capital Management.
Ryder Colonnade was completed in 1988 and covers 205,400 square feet. The building is attached to the Hotel Colonnade Coral Gables, which was not included in the transaction. The purchase price translates to about $331 per square foot.
The office tower was recently renamed to include “Ryder” after Ryder System, a logistics firm based in Miami-Dade County, moved its headquarters there. Previously located in another part of the county for two decades, Ryder downsized its office space due to increased remote work.
In 2013, an entity associated with TA Associates Realty paid $81 million for the property. Two years later, AEW Capital took over that entity and appears to have acquired full ownership of the building.
Crescent Real Estate is led by Chairman John Goff and CEO Conrad Suszynski. As of February, the firm manages $4.4 billion in assets according to its website. The company is distinct from Miami-based Crescent Heights.
This discounted sale comes during a period marked by elevated interest rates and increased expenses such as insurance and materials costs. Although the Federal Reserve has lowered its benchmark rate four times over this year and last year following eleven significant hikes in 2022 and 2023, refinancing remains difficult for many landlords holding floating-rate debt as their loan payments have risen.
South Florida’s office market experienced growth due to new companies relocating from other states over the past five years, leading to record-high rents. However, some property owners are now facing challenges from higher borrowing costs and changes in workplace habits like remote work, prompting sales at reduced prices.
Other recent examples include Foundry Commercial’s sale of Sawgrass Lake Center in Sunrise for $36.5 million this January—almost $21 million less than what it sold for seven years earlier—and a group including Rockpoint selling One Clearlake tower in West Palm Beach for $45 million this May—a discount of nearly 26 percent compared to its value four years ago.
