Azora Private Buys Distressed Office Building in Miami’s Coconut Grove

A high-stakes turnaround in Coconut Grove has concluded with a $61 million off-market sale, setting a new record for Miami’s office submarket. Torose Equities and Sabal Investment Holdings secured a $28 million profit on the five-story building at 3480 Main Highway just one year after acquiring it out of distress.

The buyer, Azora Private, paid $1,100 per square foot — a record valuation that underscores the intense demand for boutique office space in Miami. A JLL team negotiated the deal on behalf of the seller.

The path to this record-breaking deal began when Torose, headed by Scott Sherman, and California-based Sabal Investment, led by Pat Jackson, took over the 55,000-square-foot asset via a UCC foreclosure auction. By assuming a $32.5 million mortgage with Madison Realty Capital, the venture stepped into a property previously owned by an affiliate of CGI Merchant Group, which had allegedly defaulted on a $4.7 million mezzanine loan. Then, within 12 months, the joint venture transformed the property’s financial profile by moving legacy tenants to market-rate rents.

“We recognized the opportunity to acquire a well-located, fully occupied asset below replacement cost and reposition legacy leases to current market rates,” said Sherman, founder and principal of Torose Equities. “The strong investor demand for quality office assets in this submarket validated our thesis and allowed us to deliver exceptional returns to our investors.”

The operational turnaround successfully attracted a roster of high-profile tenants, including private equity firm Redbird Capital Partners, Ridgeback Biotherapeutics and real estate firm Longpoint Realty Partners. The building’s appeal is further bolstered by its lifestyle amenities, featuring the ground-floor restaurant Amal and the rooftop venue Level 6. This concentration of luxury office and dining options aligns with the broader evolution of Coconut Grove, which has become a primary destination for wealthy residents. Notably, Google co-founder Larry Page recently spent nearly $200 million on residential estates in the immediate area, illustrating the migration of wealth to the neighborhood.

Azora Private, a joint venture between Miami-based Exan Capital and Madrid-based Advenir Azora, manages approximately $2.3 billion in assets and is aggressively expanding its local footprint.

This latest acquisition follows its $82 million purchase last year of two other Coconut Grove office buildings located at 3225 Aviation Ave. and 3250 Mary St. Beyond the Grove, the firm’s portfolio includes two properties in Miami Beach’s South of Fifth neighborhood — purchased for a combined $53 million — as well as the former Flatiron Hotel in New York City, which was acquired for $47.8 million in 2023.