Major Investment Firms Acquire Iconic Bank of America Tower in Downtown Fort Lauderdale's Largest Office Deal of the Decade
Historic Transaction Reshapes Downtown Fort Lauderdale's Skyline
In a landmark transaction that underscores the robust demand for premium office space in South Florida, a triumvirate of prestigious investment firms has acquired the Bank of America Plaza at Las Olas City Centre for approximately $220 million. This monumental deal, executed by Lone Star Funds, Highline Real Estate Capital, and Square2 Capital, represents the largest office transaction in Broward County over the past decade.
Property Details and Strategic Location
The architectural masterpiece, completed in 2003, stands 23 stories tall at 401 East Las Olas Boulevard. Spanning a full city block on 2.4 acres, the 410,600-square-foot tower has maintained an impressive average occupancy rate of 94 percent, highlighting its enduring appeal to premier tenants. The property's strategic location in downtown Fort Lauderdale's business district has attracted and retained blue-chip tenants including Bank of America, Greenberg Traurig, Boies Schiller Flexner, Motorola Solutions, and UBS.
Investment Consortium Background
The acquisition brings together three powerhouse firms with proven track records in commercial real estate:
- Lone Star Funds, led by CEO Donald Quintin, brings its extensive global expertise with $95 billion in total capital commitments across 25 funds since its 1995 founding
- Highline Real Estate Capital, established in 2016 by David Moret, recently launched a $350 million distressed commercial real estate fund targeting Southeast opportunities
- Square2 Capital, founded in 2019 by Jay Caplin and Michael Manno, will manage the property, leveraging their successful track record in South Florida commercial real estate
Market Impact and Timing
This transaction arrives at a pivotal moment for Fort Lauderdale's commercial real estate market, coinciding with Bradford Allen Investment Advisors' $208 million acquisition of Las Olas Centre I & II. The previous owner, Rreef Property Trust (a DWS Group subsidiary), had acquired the property in 2016 for $220 million, matching the purchase price of Miami Tower in downtown Miami that same year.
Future Outlook and Market Implications
The transaction signals continued confidence in South Florida's office market, particularly in prime locations like Las Olas Boulevard. The maintenance of the property's value through market cycles suggests strong fundamentals for Class A office space in Fort Lauderdale's central business district.
Insights
How does this transaction compare to other major office deals in South Florida?
This represents the largest office sale in Broward County in the past decade, matching the 2016 Miami Tower transaction value of $220 million.
What makes the Bank of America Plaza an attractive investment?
The property's consistent 94% occupancy rate, premier tenant roster, and strategic location in downtown Fort Lauderdale's business district contribute to its strong investment appeal.
Why are investment firms targeting Fort Lauderdale's office market?
Fort Lauderdale's growing business ecosystem, strong demographic trends, and relative value compared to Miami make it an attractive market for institutional investors.
What does this transaction indicate about the South Florida office market?
The deal suggests continued institutional confidence in South Florida's office market, particularly for well-located, Class A assets with strong tenant rosters.
How might this acquisition impact local commercial real estate values? As a benchmark transaction, this deal could help establish pricing expectations for similar Class A office properties in the Fort Lauderdale market.
