Key Takeaways
- • Starwood Capital Group sold Sawgrass Pointe 1, a 231,000-square-foot Class A office building in Sunrise, Florida, to True North (a New York-based investment management firm) for $51.1 million, representing a $7.1 million gain on the 2015 acquisition price of $44 million.
- • The asset is strategically located in Sawgrass International Corporate Park and maintains strong occupancy at 96 percent across 17 tenants with an average remaining lease term exceeding five years, anchored by regional headquarters for Ford, Fidelity Information Systems, AT&T, and American Express.
- • Starwood Capital originally acquired the building as part of a nine-property portfolio purchased from Duke Realty in 2015 for $178.3 million, which itself formed part of a larger $1.1 billion multi-state transaction involving Trinity Capital Advisors and Vanderbilt Office Properties.
- • CBRE's team, led by Christian Lee and José Lobón alongside Amy Julian, Chris Gallagher, and Tyler Ploshnick, represented the seller in the transaction.
Summary
Starwood Capital Group has divested its Class A office asset in South Florida's Sunrise market, selling Sawgrass Pointe 1 to True North for $51.1 million. The transaction represents a profitable exit for Starwood, which acquired the 231,000-square-foot, six-story office building at 1000 Sawgrass Corporate Parkway for $44 million in 2015, yielding approximately $7.1 million in appreciation over the three-year hold period.
The property maintains institutional-quality fundamentals that likely attracted the buyer. The asset is 96 percent leased to 17 tenants with remaining lease terms averaging more than five years, providing predictable cash flow characteristics. Completed in 2002, Sawgrass Pointe benefits from its location within Sawgrass International Corporate Park, a premier office destination home to significant regional headquarters operations, including Ford, Fidelity Information Systems, AT&T, and American Express. This tenant quality and corporate anchor presence underscores the asset's market position.
Starwood's 2015 acquisition was part of a larger portfolio consolidation strategy. Duke Realty divested the building as part of a nine-property office portfolio sold to a consortium including Starwood Capital, Trinity Capital Advisors, and Vanderbilt Office Properties for $178.3 million—itself a component of a broader $1.1 billion transaction spanning four states. The current sale represents Starwood's selective capital redeployment in the office sector during a period of broader portfolio optimization.
CBRE's capital markets team executed the transaction, with Christian Lee and José Lobón leading the effort alongside Amy Julian, Chris Gallagher, and Tyler Ploshnick. The sale demonstrates continued institutional investor appetite for well-leased, corporate-anchored office assets in secondary Florida markets with strong geographic and tenant fundamentals.
The property maintains institutional-quality fundamentals that likely attracted the buyer. The asset is 96 percent leased to 17 tenants with remaining lease terms averaging more than five years, providing predictable cash flow characteristics. Completed in 2002, Sawgrass Pointe benefits from its location within Sawgrass International Corporate Park, a premier office destination home to significant regional headquarters operations, including Ford, Fidelity Information Systems, AT&T, and American Express. This tenant quality and corporate anchor presence underscores the asset's market position.
Starwood's 2015 acquisition was part of a larger portfolio consolidation strategy. Duke Realty divested the building as part of a nine-property office portfolio sold to a consortium including Starwood Capital, Trinity Capital Advisors, and Vanderbilt Office Properties for $178.3 million—itself a component of a broader $1.1 billion transaction spanning four states. The current sale represents Starwood's selective capital redeployment in the office sector during a period of broader portfolio optimization.
CBRE's capital markets team executed the transaction, with Christian Lee and José Lobón leading the effort alongside Amy Julian, Chris Gallagher, and Tyler Ploshnick. The sale demonstrates continued institutional investor appetite for well-leased, corporate-anchored office assets in secondary Florida markets with strong geographic and tenant fundamentals.
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