AEW Sells Coral Gables Office Asset to Crescent Real Estate

Crescent Real Estate has acquired the Ryder Colonnade office building in Coral Gables for $70.4 million, representing a 13 percent decrease from the price paid for the property more than a decade ago.

The Fort Worth, Texas-based firm purchased the 11-story building at 169 Coral Way from AEW Capital Management, according to public records. To finance the acquisition, Crescent secured a $67.9 million loan from FS Credit Originator, managed by Rialto Capital Management.

Built in 1988, Ryder Colonnade encompasses 205,400 square feet, according to its official website. The building is connected to the Hotel Colonnade Coral Gables, which was not included in this transaction.

The sale price equates to approximately $331 per square foot.

The property was recently renamed to include the “Ryder” designation after Ryder System, a logistics company founded in Miami-Dade County, relocated its headquarters to the building. Prior to the move, Ryder’s headquarters had been in a northwest part of the county for about 20 years. The company downsized its office footprint, attributing the change to the shift toward remote work.

According to property records, an entity affiliated with Boston-based TA Associates Realty purchased the office building in 2013 for $81 million. In 2015, AEW Capital, also based in Boston, assumed control of the entity, suggesting it acquired full ownership of the property, based on state corporate filings.

Crescent, led by Chairman John Goff and CEO Conrad Suszynski, is a real estate investment, management, and development firm with $4.4 billion in assets under management as of February, according to its website. (The company is distinct from Crescent Heights, which is based in Miami.)

This discounted sale occurs amid a challenging economic environment, with higher interest rates, increased insurance premiums, and rising costs for materials.

Although the Federal Reserve has reduced its benchmark rate four times over the past two years, it previously raised interest rates 11 times in 2022 and 2023. These tighter financial conditions have made refinancing more difficult and increased debt payments for landlords with variable-rate loans.

Over the last five years, South Florida’s office market benefited from an influx of companies relocating from other states, sending rents to record highs. However, some landlords have struggled with increased rates and the impact of remote work, leading them to sell office properties. Some have felt the sting from these pressures.

Other notable discounted transactions in the region include Orlando-based Foundry Commercial’s sale of the six-story Sawgrass Lake Center at 13450 West Sunrise Boulevard in Sunrise for $36.5 million in January, which was nearly $21 million less than its price seven years prior.

In May, a partnership consisting of Boston-based Rockpoint, Miami-based Tricera, Palm Beach-based NDT Development, and Boston-based New England Development sold the 18-story One Clearlake tower at 250 South Australian Avenue in West Palm Beach for $45 million, representing a nearly 26 percent reduction from its sale price four years earlier.