Lone Star, Highline and Square2 acquire Alhambra in Coral Gables.

Lone Star, in partnership with Highline Real Estate Capital and Square2 Capital, has closed on The Alhambra, a two-building, Class A office complex in downtown Coral Gables, Florida. The property totals 326,451‑square‑feet of office space and sits directly adjacent to a Hyatt Regency, giving tenants direct access to hospitality and meeting infrastructure that corporate occupiers prize.

The acquisition adds to Lone Star’s growing footprint in South Florida after its purchase of 401 East Las Olas Boulevard in Fort Lauderdale in February 2025. Executives at Lone Star framed the deal as a targeted bet on market fundamentals: tight submarket supply, affluent local demographics and continued corporate interest in South Florida as a Sun Belt hub. Jérôme Foulon, Global Head of Commercial Real Estate at Lone Star, highlighted the firm’s strategy of buying centrally located, best‑in‑class office assets.

Tessa Truex, Managing Director at Lone Star, pointed to tenant migration patterns favoring Coral Gables — shorter commutes for employees living in Miami’s suburbs, proximity to private schools and lifestyle amenities along Giralda’s Restaurant Row — as drivers that bolster leasing resilience. The property’s institutional tenant roster and unobstructed views toward Brickell and Coral Gables’ downtown cores were cited as value attributes that underpin repositioning or selective capital improvements.

The transaction underscores a broader allocation shift: institutional investors and opportunistic real estate managers have been re‑targeting high‑quality Sun Belt office portfolios as companies balance hybrid working with a renewed appetite for amenitized, urban‑fringe campuses. While some coastal CBDs still report elevated vacancy levels compared with pre‑pandemic norms, pockets such as Coral Gables have shown stronger leasing velocity and rent stability thanks to limited new supply and a concentration of professional services and regional headquarters.

The seller was represented by JLL Capital Markets, which also arranged financing for the buyer group. That financing package reflects the continued availability of debt for core and core‑plus office properties with strong tenant mixes, even as lenders and equity providers remain selective about sponsorship and asset quality.

Operationally, the new ownership trio — Lone Star, Highline Real Estate Capital and Square2 Capital — will likely evaluate light‑touch upgrades, leasing acceleration and tenant retention initiatives to enhance net operating income and capture rent growth in the submarket. For investors watching South Florida, this deal provides another data point that top‑tier, well‑located offices remain investible when sponsorship, location and tenant composition align.