Elliott Investment Management Set to Acquire Miami’s 701 Brickell Tower for $450 Million

Paul Singer’s hedge fund, Elliott Investment Management, is under contract to purchase the 701 Brickell office tower in Miami for approximately $450 million. This deal signals the New York-based firm’s growing interest in South Florida real estate.

According to sources, Elliott is acquiring the 33-story office tower at 701 Brickell Avenue from Nuveen Real Estate, a subsidiary of the Teachers Insurance and Annuity Association of America (TIAA). Nuveen listed the building for sale in April with a target price of over $500 million. While Elliott, Nuveen, and the brokerage JLL have declined to comment, insiders confirm the sale is progressing.

Constructed in 1985 and renovated in 2021, the 687,000-square-foot tower is more than 90% leased, hosting tenants such as law firm Holland & Knight, IT firm Kaseya, and Bank of America. Pura Vida operates a restaurant on the property. TIAA originally purchased the building in 2002 for $172 million, and the anticipated sale to Elliott at $450 million equates to roughly $657 per square foot.

Bloomberg first reported the news, with The Real Deal later confirming the information.

Brickell, known as Miami’s financial district, has seen property prices surge in recent years, particularly during the pandemic, as companies relocated from out of state. Asking prices for office space in premium buildings have reached new highs, nearing $200 per square foot.

Nuveen is one of many landlords in Brickell looking to capitalize on these rising values. Aimco, a Denver-based real estate investment trust, has listed its 4.3-acre assemblage, including the Brickell Bay Office Tower and Yacht Club Apartments, for $650 million. The site offers potential for redevelopment, allowing for more than 3.1 million square feet across several supertall buildings.

Founded by Paul Singer in 1977, Elliott Investment Management manages nearly $69.7 billion in assets as of June 2023. The firm moved its headquarters from New York to West Palm Beach recently. Elliott is also a major backer of Tyko Capital, which has actively provided large loans for major projects in South Florida. Tyko recently issued a $565 million loan for the 830 Brickell office tower and $527 million in construction financing for the luxury St. Regis Residences in Miami.

With this acquisition, Elliott continues to expand its presence and investment in the rapidly growing South Florida market.