PGIM Sells Coral Gables Office Complex for $98M

Insurance giant PGIM has sold the 717,805-square-foot Ponce office complex in Coral Gables, Fla., for $97.8 million.

The buyers include Intalex, Itero, Greenwall Capital Management and the family office of the late entrepreneur Carl DeSantis, who founded Sundown Vitamins and was an early investor in the Celsius energy drink. (He was not related to Florida Gov. Ron DeSantis.)

The asset, which is 65 percent leased, includes four structures: a 257,168-square-foot Mediterranean-style office building at 2525 Ponce de Leon Boulevard; an adjoining, 93,670-square-feet office building, which is attached to a six-story parking garage at 2555 Ponce de Leon Boulevard; and a three-story parking garage across the street at 152 Valencia Avenue.

Acore Capital provided a $105 million acquisition loan. The partnership plans to spend about $30 million renovating the complex, which was built between 1966 and 2004. The project is expected to be done next year.

“Premier assets in high-growth, supply-constrained markets continue to outperform,” Jack Henry Kapp, managing partner of Greenwall, said in a statement. “Even prior to closing, our pre-leasing activity has put us well ahead of schedule in executing our business plan.”

PGIM purchased the property for an undisclosed amount 20 years ago from Hines, which had developed and repositioned the Ponce. Hines will continue to continue to manage the asset.

Chris Lee, Sean Kelly, Tom Rappa, and Matthew Lee of CBRE represented the seller, and Amy Julian and Andrew Chilgren of CBRE arranged the financing. A representative for PGIM did not immediately respond to a request for comment.

The deal follows another repositioning sale of an office building in Coral Gables, an upscale suburb of Miami. In January, Deutsche Bank’s asset management arm sold off the Alhambra for $120 million, about the same amount it paid more than a decade ago, to private equity firms Lone Star Funds, Square2 Capital and Highline Real Estate Capital.