1000 Ponce De Leon Blvd, Coral Gables, FL
Net Rentable Area: 18,552 S.F.
Asset Type: Office
1000 Ponce is an office building located just a few blocks North of Miracle Mile, the shopping and entertainment epicenter of Coral Gables in Miami, Florida. Over the past few years, Ponce de Leon Boulevard has seen tremendous growth and redevelopment, and there are several development projects currently underway. The University of Miami is located in Coral Gables, and several prominent Latin American companies have established themselves in the Gables. Coral Gables has become a Miami destination and has a true “live-work-play” environment.
The property was originally constructed in 1965 and completely redeveloped by Ytech in 2011. Ytech rehabilitated more than 25,000 square feet of office space – a total of more than $2.1 million dollars in renovations including complete interior remodeling, space reconfiguration, installation of common area conference rooms on every floor, bathroom renovations and introduction of state-of-the-art technology.
After a very comprehensive market study of the office sector in Coral Gables and with improving gross domestic product (GDP), signs of real economic growth, emerging trends dictated by technology, and increasing demand for smaller and more dynamic office spaces, Ytech saw the opportunity to repurpose the building by modifying the conventional office rental methodology and transforming the entire building into an executive suite venue.
Ytech purchased this property in November 2010 from one of its local banking relationships. The former owner defaulted on the loan obligations after failing to stabilize the property. At acquisition, the building was 25 percent leased and in need of major tenant improvements. Ytech assumed the existing debt, restructured and modified the loan, and completed $2.1 million redevelopment plan to reposition the building.
The new management strategy provided tenants with an impressive list of amenities which included top-of-the-line IT equipment, fully furnished office spaces, customizable telephone plans, high-speed internet and Wi-Fi access, class A conference rooms with teleconferencing equipment, coffee lounge areas, secretarial support, print/copy/fax access and private covered parking.
Ytech sold this asset after achieving 100 percent occupancy plus a sizeable waiting list. In addition, as one of the few executive office centers in the area with virtually no competition, through redevelopment, repurposing and repositioning, Ytech was able to increase the per-square-foot rental rates by more than 300 percent, from $12 per-square-foot to more than $40 per-square-foot.