Lennar Pays $65M for Miami HQ
Franklin Street Properties Corp. sold the 212,182-square-foot office building at 5505 Blue Lagoon Drive to national homebuilder Lennar for $65 million. The price on the company’s national headquarters equated to $320 per square foot.
The S. Florida Business Journal reports the eight-story building last traded for $48 million in 2003. Lennar signed a 16-year, 156,000-square-foot lease in this building in 2019 and moved in later. It was built on the 9.7-acre site along a lake in 2002 and recently renovated. Amenities include a lounge and a 5,000-square-foot fitness center.
Lennar recently announced its fourth-quarter results, reporting more home sales, although it reduced prices and offered incentives to buyers in some markets to keep volume going. The homebuilder has responded to the rise in interest rates by adjusting prices to make homes more affordable so it could keep sales going at healthy levels.
Like most production builders, Lennar prefers an asset light strategy with land banks holding the lots until it’s ready to sell them to buyers. However, Lennar will not keep its corporate office on its books.