The city of Coral Gables now owns the entire 400 block on Biltmore Way near city hall with the acquisition of ShareMD’s medical office building after months of negotiations and commission approvals.
The city dropped $24 million for the four story, 53,030-square-foot Biltmore Medical Center at 475-495 Biltmore Way, according to a release from Tere Blanca’s Blanca Commercial Real Estate, which served as the sole leasing agent for the property.
The sale breaks down to $453 per square foot, a 65 percent spike from the $275 per square foot that Jacksonville-based ShareMD paid in 2019. That $14.6 million purchase was part of a larger $33.2 million deal that also included the Somi Center office property at 5966 South Dixie Highway in South Miami.
Blanca CRE said the building’s occupancy rose from 82 percent to 94 percent and net operating income increased by 40 percent during ShareMD’s ownership. The company rebranded to Parallel Medical Properties following the sale.
The deal comes as a multimillion-dollar renovation of the historic city hall is set to begin 500 feet away.
Listings from May show about 5,000 square feet available for lease, with an asking rent of $45.50 per square foot. Tenants include Asthma and Allergy Associates of Florida, Florida Center for Allergy & Asthma Care, Gastro Health, Katz Regenerative Foot and Ankle and Miami Ortho Spine.
The city commission approved the intent to purchase the property months ago and has since been negotiating a purchase price.
The city tapped ShareMD’s property management affiliate, Medicus Asset Management LLC, to oversee the building for an initial one-year term following the sale. Medicus exclusively manages ShareMD’s 500,000-square-foot portfolio in Florida and California.
The city recently approved a $40 million bond agreement with Thornton Construction to restore Coral Gables’ nearly century-old city hall at 405 Biltmore Way, with work set to begin this month, WSBS reported.
The work to restore the Mediterranean Revival landmark has generated debate among preservationists over plans to replace, rather than restore, the building’s original wood-framed windows.
The city leased 10,500 square feet of office space for city staff at Florida East Coast Realty’s 2020 Ponce. The city manager, city attorney and city clerk moved into a 6,900-square-foot space on the 12th floor, and the finance department moved to a 3,600-square-foot space on the ground floor. Commission meetings are being held in the Public Safety Building on Salzedo Street.
City hall expansions and new developments have been on the rise in Miami-Dade County.
The city of Miami secured a $193 million building permit in July for a civic center at Miami Freedom Park that will house administrative offices, with employees expected to move in by late 2027 or early 2028. However, the city commission voted to keep city hall and regular commission meetings at the historic building in Coconut Grove.
In South Miami, the city selected 13th Floor Investments for a $309 million redevelopment of its city hall site dubbed “Link at SoMi” that would include 670 residential units, retail space and a new municipal building.
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