NY Real Estate Magnates Purchase Downtown Miami Tower for $13.3M

You know that the market is hot when New York real estate moguls are turning their attention towards up-and-coming investments in Downtown Miami.

In a recent $13.3M deal, ASRR Capital Ltd. has signed a contract to purchase Tower 33, a 14-story, 95,000 square foot building located at 33 Southwest Second Avenue in Miami.  This property has air rights for a 36-story, 215,000 square foot building and the purchase is expected to close within 30 days.

ASRR Capital is a publicly-traded Israeli company headed by Alex Sapir and Rotem Rosen, major New York-based landlords, who have established a reputation for successful large-scale transactions.  Among ASRR’s deals in New York, Sapir and Rosen leased 2.3M square feet at 11 Madison Avenue to Credit Suisse, Sony, and Yelp in 2014, and then sold the office building for $2.6 billion in August, making the largest single-building sale in New York history.

Both Sapir and Rosen have reason to believe that Miami will be the next hot spot for real estate development.

“We believe that the huge immigration to Miami, especially from New York City, will create substantial demand for office buildings,” Sapir, ASRR’s chairman, said in a statement.

Rosen is in agreement, stating that “There is huge demand for office buildings for all the hedge funds guys, the real estate gurus coming there and the banks, and that is what we are counting on.”

Analyst reports show that office rental rates in Miami-Dade County have been rising, amid declining vacancy. Vacancy rates for the county fell to 13.3 in the second quarter, down from 15.5 percent for the same period last year, according to JLL.

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