Miami Tower That Lured Citadel, Microsoft Lands $565M In Financing
The most highly anticipated office tower in Miami locked in a $565M mortgage ahead of its anticipated fall delivery.
Developers OKO Group and Cain International secured the long-term loan from New York-based Tyko Capital for 830 Brickell. The 57-story tower broke ground in 2020 and became a magnet during the pandemic for high-profile firms relocating from other states or opening outposts in South Florida.
The 640K SF tower, originally slated for delivery in 2022, broke ground as the first new trophy office tower in the city in a decade, and it's been fully leased for more than a year. More than 90% of its tenants will be opening their first Miami office at the property, according to a release.
Tenants are currently building out spaces as the tower receives a rolling occupancy certification from inspectors as sections are completed.
The permanent financing replaces a $357M loan from MSD Partners, the investment fund backed by Michael Dell. The loan was originated for $300M in 2019 and was boosted to its closing balance last July.
Tyko is a joint venture between Surya Capital Partners CEO Adi Chugh and hedge fund Elliott Investment Management, which moved its headquarters to West Palm Beach in 2020.
“Our ability to secure favorable financing terms for 830 Brickell is a fitting capstone to the building’s success,” OKO CEO Vlad Doronin and Cain CEO Jonathan Goldstein said in a joint statement.
“830 Brickell has acted as a catalyst for a historic wave of business migration into South Florida, positioning itself as the base for the world’s premier finance, technology and professional services firms and propelling an office market that continues to outperform other major cities.”
The tower will be anchored by Citadel, which recently subleased two floors to increase its footprint to 130K SF across eight stories. But Ken Griffin's hedge fund is far from the only high-profile firm set to have a presence at the property.
Microsoft signed on for 50K SF at the tower in September 2021, nearly a year before Citadel announced it would relocate its headquarters from Chicago to Miami. Top law firms will also move in, including Kirkland & Ellis, which took six floors before subleasing two to Citadel, and Winston & Strawn, which leased 35K SF.
Private equity firm Thoma Bravo, the insurance brokerage Marsh, wealth manager CI Financial and the New York-based financial firm A-Cap also have space in the tower.
Sidley Austin attorney Beatriz Azcuy represented OKO and Cain in the debt refinancing.
830 Brickell in many ways came to embody the pandemic-era success story being told by leaders in Florida and Miami. Mayor Francis Suarez frequently cited the project as proof that world-class firms were coming to Miami, and brokers hold it up as evidence that demand for high-quality space remains strong.
It was designed by Chicago-based Adrian Smith + Gordon Gill with interiors from Italian design firm Iosa Ghini Associati. Amenities at the tower include a private club on the top floor and a restaurant with a menu from a three-Michelin-starred chef, according to the release.
The tower has propelled rent growth in Brickell, Miami’s financial district and a longtime destination for top firms. Leasing launched in 2020 with asking rates at $60 per SF and the final leases at the tower closed above $150 per SF, according to the release.
OKO and Cain even made an agreement in 2022 with WeWork — the first tenant to commit to the tower back in 2019 — to return 146K SF of leased space so that the developers could achieve a higher rate. The landlords reportedly paid the coworking firm not to move in.
Class-A asking rates in Brickell sat at $96.69 per SF at the end of the second quarter, nearly 50% higher than the county’s $65.47 per SF average for similar space, according to Blanca Commercial Real Estate.
830 Brickell’s ability to set the top of the market provided a lift to rents at other offices just as pandemic-era demand was peaking.
While leasing activity has slowed, landlords of existing space in Brickell have continued to push rents while increasing concessions to close deals, JLL analysts wrote in a market report this month.
