Miami-Dade Aims to Raise $265M to Purchase Old Office in Fontainebleau

Miami-Dade County is securing up to $265 million to finance the acquisition and renovation of an old office building located approximately 15 miles east of Downtown Miami.

Approval and Acquisition

In June, the Miami-Dade County Board of Commissioners approved the $182 million purchase of the Flagler Corporate Center. This 671,088-square-foot office building is situated at 9250 West Flagler Street in the unincorporated neighborhood of Fontainebleau. Following this approval, the board also sanctioned a municipal bond to fund the property's acquisition and its necessary renovations. The building, originally completed in 1974, is set to become the West Dade Government Center, consolidating various permitting departments under one roof as advocated by Miami-Dade Mayor Daniella Levine Cava.

Financial Benefits and Controversy

According to some county officials, this move is projected to save Miami-Dade County $860 million over the next thirty years. Despite this potential for significant savings, the deal has not been without controversy.

Valuation and Occupancy Concerns

Initially, Mayor Cava proposed a $205 million expenditure for the Flagler Corporate Center, which was originally built to house Florida Power & Light, the state's largest power utility provider. However, County Commissioners raised concerns about the building's value in the post-pandemic real estate market, pointing out its aging infrastructure and decreased worth. These concerns were heightened by the property's occupancy rate, which plummeted to 20 percent last year following the departure of a key tenant. This vacancy led to the building's loan, issued by Barry Sternlicht’s Starwood Mortgage Capital, being placed on a watchlist.