Spanish billionaire Amancio Ortega has finalized the purchase of the Sabadell Financial Center in Miami’s Brickell neighborhood for $274.4 million, making it the largest office transaction in South Florida so far this year.
Ortega’s family investment office, Ponte Gadea, acquired the 30-story building at 1111 Brickell Avenue from sellers KKR, based in New York, and Parkway, based in Orlando. The deal did not involve a recorded mortgage, indicating that it was likely completed entirely with cash.
The sale was brokered by Chris Lee and Sean Kelly of CBRE. The Sabadell Financial Center spans 524,000 square feet and sits on a 1.8-acre site. Developed in 2000 as part of a larger mixed-use project that includes the JW Marriott Miami hotel next door, the property counts Industrious, Tibint, Kennedys Law, Law Offices of Wolf & Pravato, and Northmarq among its tenants.
KKR and Parkway previously bought the building for $248.5 million in 2018. According to their websites, KKR is led by co-CEOs Joseph Bae and Scott Nuttall while Parkway is headed by James Heistand.
South Florida’s office market has seen slower investment activity recently compared to previous years when low interest rates attracted more buyers and drove up prices. Office sales volume in Miami-Dade County reached $2.1 billion in 2021 before dropping to $1.1 billion in 2022 and further declining to $700 million last year; however, sales rebounded to $1.4 billion last year according to data from CBRE.
This latest transaction surpasses other major deals this year such as Bradford Allen Investment Advisors’ $208 million purchase of Las Olas Centre I & II and Lone Star Funds’ acquisition of Bank of America Plaza at Las Olas City Centre for $221 million—both located in downtown Fort Lauderdale.
Most current buyers are using all-cash offers due to high financing costs. Ortega is known for his strategy of reinvesting profits from his global retail business—including Zara parent Inditex—into real estate through Ponte Gadea without relying on loans.
Forbes lists Ortega as the world’s twelfth richest person with an estimated net worth of $127.1 billion. His increased activity this year aligns with reports that he will receive a record $3.6 billion dividend from his retail holdings—a move some analysts say could help offset Spain’s wealth tax obligations.
An expert told The Real Deal earlier this year: “Purchasing all cash also allows for a reprieve on prices because sellers are more interested in the certainty of closing over getting the highest price in the current financing climate.”
In addition to this Miami acquisition, Ponte Gadea recently purchased Atlas Plaza retail building for $110 million and Veneto Las Olas apartment tower for $165 million—both located in South Florida—as well as properties abroad including Hotel Banke and an office-retail building on Rue Saint-Honoré in Paris and an office property housing Planeta’s headquarters in Barcelona.
Ponte Gadea is also reportedly acquiring a minority stake in PD Ports from Brookfield Asset Management in the United Kingdom.
