Days before it was slated to close on the purchase of an office building in Miami Beach, Starwood Capital Group has pulled out of the deal, according to a source directly involved in the matter.
Miami Beach-based Starwood, one of the largest real estate investors in the world, was under contract to purchase The Lincoln, at 1691 Michigan Ave., for $92.5 million from CLPF Lincoln LLC, in care of Washington, D.C.-based Clarion Partners. The Miami Beach City Commission approved the assignment of the ground lease for the property July 20, clearing the way for the purchase. The price of the pending deal was disclosed in city records.
However, Starwood terminated the contract July 26, according to a source close to the deal. That means Starwood will likely lose the $2.5 million deposit it made when the property went under contract. If Starwood had pulled out of the deal only a week earlier, it could have recovered that money, according to the source.
The Lincoln consists of 118,658 square feet of office space, 43,166 square feet of retail and a 709-space parking garage.