Crescent Real Estate has acquired the Ryder Colonnade office building in Coral Gables for $70.4 million, representing a 13 percent decrease from its price over ten years ago. The 11-story property, located at 169 Coral Way, was purchased from AEW Capital Management, according to public records. Crescent secured a $67.9 million loan from FS Credit Originator, managed by Rialto Capital Management.
The Ryder Colonnade, completed in 1988 and totaling 205,400 square feet, is attached to the Hotel Colonnade Coral Gables; however, the hotel was not included in this transaction. The purchase price equates to approximately $331 per square foot.
The building recently adopted the “Ryder” name after Ryder System relocated its headquarters there from another Miami-Dade County location. Ryder cited the shift toward remote work as a reason for moving to a smaller office.
In 2013, an entity affiliated with TA Associates Realty paid $81 million for the building. Two years later, AEW Capital took control of that entity, suggesting it had acquired full ownership.
Crescent Real Estate is based in Fort Worth, Texas and is led by Chairman John Goff and CEO Conrad Suszynski. According to its website, Crescent manages $4.4 billion in assets as of February. The company clarified it is distinct from Miami-based Crescent Heights.
This sale occurs during a period marked by higher interest rates and increased costs for insurance and materials. Despite the Federal Reserve reducing benchmark rates four times since last year after raising them aggressively in 2022 and 2023, refinancing remains challenging for landlords with floating-rate debt due to elevated obligations.
South Florida’s office market benefited from an influx of companies relocating from other states over the past five years, which drove rents up to record levels. Nevertheless, some landlords have faced difficulties stemming from higher borrowing costs and trends toward remote work, leading some to sell their properties.
Other recent transactions also reflect discounted sales prices. For example, Foundry Commercial sold Sawgrass Lake Center in Sunrise for $36.5 million this January—almost $21 million less than its value seven years earlier—and Rockpoint along with several partners sold One Clearlake tower in West Palm Beach for $45 million in May, about 26 percent below its price four years prior.
