Falcon Completes Sale of Office Property in Miramar, Florida
In late December 2007 Falcon Real Estate completed the sale of a 49,650 square-foot office building in Miramar, Florida. This two-story building is situated on 8.2 acres and is fully occupied by Miami-based Royal Caribbean Cruise Lines. The building was originally purchased at the time construction was completed in 2003 by a joint venture between Kuwait Finance House and Falcon Real Estate.
Scott Sweeney, Executive Vice President of Falcon, said, “We initially bought this property as a single-tenant long-term transaction that was structured in a Sharia compliant manner. But the original tenant of the property, Delta Airlines, declared bankruptcy and vacated the building in September 2006. We were able to quickly identify Royal Caribbean Cruise Lines as a replacement tenant and signed a new 10-year lease with them that commenced in April 2007. The costs of obtaining the new tenant were covered by a Letter of Credit we had secured from Delta. We believed that selling the property with the longest possible lease term remaining maximized its value, and the achieved price of $14 million, equal to $282 per-square-foot, compared very well with other transactions during the year.”
Falcon Real Estate worked diligently to successfully close the transaction prior to the end of 2007 in order to meet the seller’s goals and in anticipation of some cooling of the investment markets in 2008.