Northwestern Mutual has provided a $184 million mortgage on a 677,700 sq ft office tower in Miami, Florida, a market that saw one of the highest increases in office rents last year in the US.
The life insurance company provided the 10-year, fixed rate loan to TIAA (formerly TIAA-CREF) on the 33-story Class A property at 701 Brickell Avenue.
“The loan will help manage the maturity profile of the TIAA Real Estate Account’s debt portfolio and provide capital for additional real estate investments,” Bill Daniel, senior director and head of real estate finance at TIAA global asset management, told Real Estate Capital.
The downtown Miami skyscraper is 92.2 percent leased, according to the company’s 2015 annual report, with a tenant list that includes Bank of America, Café 101, GFG Capital, and Expedia. TIAA purchased the property from MetLife in November 2002 for $172 million. The tower was built in 1986.
The loan comes after another life insurance company, Allianz, provided a $49.75 million mortgage on a different 280,000 sq ft office park in Miami to an affiliate of Triarch Investment Group last month.
The Miami-Dade County rental rates for Class A office space had one of the highest increases among major markets statewide last year. The city’s direct asking rent for office space jumped 6.3 percent to $41.48 per sq ft in 2015 from $39.02 in 2014, according to a Cushman & Wakefield report released in February.
Northwestern Mutual manages $238 billion in assets, according to its 2015 annual report, and was founded in 1857. The life insurance company did not respond to request for comment in time for publication.
The TIAA Real Estate Account manages $23 billion in assets as of March 31, 2016, according to the company.