Investor Trio Acquires Coral Gables Office Portfolio for $97.8M

A joint venture of three investment firms has completed a $97.8 million purchase of The Ponce office complex in Coral Gables, marking one of the city's largest office transactions this year.

Intalex Capital, Itero Investments and Greenwall Capital acquired the 365,000-square-foot portfolio that includes the 12-story Class A building at 2525 Ponce de Leon Boulevard, a six-story Class B building at 2555 Ponce de Leon and a parking garage at 152 Valencia Avenue. ACORE Capital provided a $105 million loan to finance both the acquisition and $30 million in planned renovations.

The seller, Prudential Global Investment Management, had owned the properties since 2007 when it purchased them from Texas-based developer Hines. The transaction closed after being under contract since September.

The new owners plan extensive upgrades including modernized common areas, improved building systems, enhanced courtyards and expanded tenant amenities. Renovations are expected to be completed by 2027.

Greenwall Capital, led by Jack Henry Kapp, invested through a joint venture with CDS, the family office of late entrepreneur and philanthropist Carl DeSantis. Bryson Ridgway serves as principal of Intalex, while Carlos Jimenez, Lori Miller Worman, Scott Grubbs and Jennifer Bender founded Itero Investments.

The portfolio currently stands at 65 percent leased, with tenants including law firms and financial services companies. Podhurst Orseck, one of the largest tenants, relocated from Brickell, while MassMutual is expected to move in soon. The investors reported securing 130,000 to 140,000 square feet in preleasing commitments from companies that have signed letters of intent.

The buyers expressed confidence in Coral Gables as companies seek alternatives to Brickell and downtown Miami, looking for more affordable large office spaces. The area hosts offices for Apple and serves as headquarters for Amerant Bank, City National Bank of Florida and Grove Bank & Trust, along with numerous professional services firms.

For Intalex Capital, the deal expands its South Florida holdings beyond the 110 East office tower in downtown Fort Lauderdale, which it acquired with PEBB Capital and CDS for $43 million in 2023.

Hines will continue managing the portfolio, while Ryan Holtzman and Lena Weeks of Cushman & Wakefield will lead leasing efforts. CBRE brokers Chris Lee, Sean Kelly, Tom Rappa and Matthew Lee represented the seller.

The acquisition joins other significant Miami-Dade office transactions this year, including the $119.6 million sale of The Alhambra in Coral Gables, the $180 million purchase of 545wyn in Wynwood by Ken Griffin and Goldman Properties, and Moishe Mana's $110 million acquisition of One Downtown.

According to Colliers, Coral Gables Class A offices carry a 13.5 percent direct vacancy rate with average asking rents of $68.20 per square foot as of the first quarter. Class B offices show tighter availability at 8.2 percent direct vacancy with average rents reaching $54 per square foot.