Spanish billionaire Amancio Ortega has finalized the purchase of the Sabadell Financial Center in Miami’s Brickell neighborhood for $274.4 million, making it the largest office transaction in South Florida so far this year.
Ortega’s family investment office, Ponte Gadea, acquired the 30-story tower at 1111 Brickell Avenue from sellers KKR, based in New York, and Parkway, based in Orlando. Public records and real estate database Vizzda confirm that no mortgage was recorded for the deal, indicating it was likely completed entirely with cash.
CBRE’s Chris Lee and Sean Kelly represented KKR and Parkway in the sale. The Sabadell Financial Center, which spans 524,000 square feet on a 1.8-acre site, was developed by MDM Group and Rilea Group as part of a larger mixed-use project that also includes the JW Marriott Miami hotel next door.
Current tenants of the building include Industrious (a co-working company), marketing firm Tibint, Kennedys Law, Law Offices of Wolf & Pravato, and Northmarq—a commercial real estate services provider.
KKR and Parkway previously bought the property for $248.5 million in 2018. KKR is led by co-CEOs Joseph Bae and Scott Nuttall; Parkway is headed by James Heistand.
The acquisition comes during a period of slower office investment activity in South Florida compared to the surge seen during the pandemic years. Lower interest rates at that time attracted out-of-state companies to lease large spaces, leading to increased rents and brisk sales activity. Over the past two years, higher interest rates have made lenders more cautious and reduced overall investment volume.
In Miami-Dade County, office sales volume peaked at $2.1 billion in 2021 before dropping to $1.1 billion in 2022. The figure declined further to $700 million in 2023 but rebounded last year to $1.4 billion. For this year through mid-September, total sales reached $293 million.
Ortega’s all-cash purchase exceeds other major South Florida office deals this year: Bradford Allen Investment Advisors’ $208 million acquisition of Las Olas Centre I & II in Fort Lauderdale and Lone Star Funds’ group buying Bank of America Plaza at Las Olas City Centre for $221 million.
Many current buyers are using all cash to avoid costly financing amid high interest rates. Ortega—best known as founder of Zara and parent company Inditex—regularly reinvests earnings from his retail businesses into global real estate through Ponte Gadea.
Forbes lists Ortega as the world’s twelfth richest person with a net worth of $127.1 billion. His recent activity coincides with an anticipated record dividend payout from his retail holdings this year; Bloomberg reported he may be investing these funds into real estate as a strategy related to Spain’s wealth tax.
“Purchasing all cash also allows for a reprieve on prices because sellers are more interested in the certainty of closing over getting the highest price in the current financing climate,” an expert told The Real Deal in July.
Last month, Ponte Gadea paid $110 million for Atlas Plaza retail building in Miami Design District and bought Veneto Las Olas apartment tower for $165 million earlier this summer. Internationally, Ponte Gadea purchased Paris’ Hotel Banke for $113 million and an eight-story property on Rue Saint-Honoré for about €170 million ($197.3 million). In May, it acquired a Barcelona office building for $284 million; it is also reportedly acquiring a significant stake in PD Ports from Brookfield Asset Management in the UK.
