The firm’s Oscar Rivera recently represented the owner and developer of the 220 Alhambra Circle office tower in the sale of the property for $75 million to Mercantil Commercebank, the building’s largest tenant. His critical role in this transaction, which was in the works for nearly three years, was the subject of the lead “Dealmakers” feature in today’s Daily Business Review.
The article reads:
Attorney Oscar Rivera, head of the real estate practice at Siegfried, Rivera, Hyman, Lerner, De La Torre, Mars & Sobel, represented the seller.
“It was a challenging transaction simply because the building was not for sale,” he said. “[Building owner] Joe [Kracauer] has a great attachment to that building. It is in a trophy corner on the main drag in Coral Gables, and he was quite proud of what he had accomplished. His son Benjamin was one of the architects in that project, so there was an emotional factor. He really didn’t want to sell. And it took a lot of convincing over the years.”
Once that hurdle was surmounted, the two sides had to negotiate the value of the building, which was something of a complicated proposition. The seller argued for a high price given the leases the building commanded. The buyer countered that, were the bank to relocate, the nearly empty building would immediately face depressed leasing rates.
“We went back and forth a number of times and a number of occasions, and all sorts of strategies and ideas were tossed about: buying part of the building, buying part of the building now and part later, selling the entity instead. I don’t think any idea in terms of how to structure it wasn’t discussed,” Rivera said.
Quote: “We looked at all different parts of permutation and in the end a straight sale was the best option. It went full circle,” Rivera said.
Our firm congratulates Oscar on his efforts in bringing this transaction to fruition and having it catch the attention of the Daily Business Review. Click here to read the complete article in the newspaper’s website (registration required).