Valoro Capital announced on Apr. 2 that it has purchased a five-story office building in Edgewater for $19 million, marking a discounted acquisition compared to the property’s previous sale price.
The transaction involves the 63,000-square-foot property at 2125 Biscayne Boulevard, which was previously owned by Chicago-based flexible workspace operator Expansive. Valoro’s purchase price of $300 per square foot represents a roughly 10 percent decrease from the $21 million, or $332 per square foot, that Expansive paid in 2019.
Expansive had invested $10 million into upgrading the building, adding amenities such as private offices, an updated kitchen, and tenant lounges. The company has recently been selling some of its properties while continuing to operate coworking spaces elsewhere. In January of last year, Expansive sold another property in Chicago at a significant loss after facing financial distress including foreclosure actions.
Miami-based Valoro Capital plans to retain ownership of the Edgewater building and explore redevelopment opportunities. The firm described the asset as having “durable in-place cash flow and redevelopment upside” while it seeks entitlements and develops design strategies for future use.
The property is eligible for construction of more than 700 residential units under Florida’s Live Local Act if certain affordability criteria are met. The act allows developers to bypass local zoning rules provided that at least 40 percent of units are reserved for residents earning no more than 120 percent of area median income.
Edgewater continues to attract development activity with projects such as Vertical Developments and Urban Network Capital Group’s Elle magazine-branded condo-hotel and SB Development’s Cove Residences tower underway.
