PGIM has sold The Ponce, a long-held two-building office complex in Coral Gables, after nearly two decades of ownership. The transaction closed at a price of $97.8 million, transferring the 348,473-square-foot property to a buying group composed of Intalex Capital, Itero Investments and Greenwall Capital.
The Ponce consists of two mid- and high-rise office buildings situated on Ponce de Leon Boulevard. The larger tower, located at 2525 Ponce de Leon Blvd., rises 12 stories and totals 254,803 square feet. The second structure is a six-story building encompassing 93,670 square feet, bringing the campus to a combined total of 348,473 square feet of office space.
Commercial Search reports that CBRE worked on behalf of PGIM in the disposition of the campus. In addition to representing the seller, CBRE also arranged acquisition financing for the buyers. The capital stack for the purchase includes a $105 million acquisition loan provided by ACORE Capital, according to the report.
CBRE’s sales team for the assignment included Christian Lee, Sean Kelly, Matthew Lee and Tom Rappa, who represented the seller in the transaction. On the debt side, Andrew Chilgren and Amy Julian were credited with arranging the acquisition financing.
Post-closing, the new ownership group has outlined a significant capital improvement plan for the campus. The buyers intend to invest $30 million in renovations at The Ponce. The planned work will address both the user experience and the building infrastructure, with improvements to common areas and amenities, updates to building systems and upgrades to the property’s courtyards.
Leasing and operations responsibilities at the complex are also being restructured under the new ownership. Cushman & Wakefield has been engaged to oversee leasing efforts at The Ponce, positioning the firm as the lead on tenanting the two-building campus. Hines has been selected to manage the property, taking on day-to-day management responsibilities for the office complex.
Renovation work is expected to proceed over the next several years. The owners’ improvement program is scheduled to be completed by 2027, aligning the campus with the planned timeline for the delivery of the upgraded common spaces, amenities, systems and courtyards. No additional details on leasing targets, occupancy or tenant mix were disclosed in the report.
