Bayfront 2011 Property, a special-purpose vehicle set up by Kuala Lumpur-based resort and casino developer Genting Malaysia Berhad, has acquired a 604,146-square-foot office building and adjacent parking lot in Miami from The McClatchy Company for $236 million, or roughly $391 per square foot. The seven-story building, known as One Herald Plaza, currently serves as headquarters for The Miami Herald Media Company, a subsidiary of McClatchy.
“This property, located on Biscayne Bay, has been home to The Miami Herald for many years,” said McClatchy's chief executive Gary Pruitt in a statement. “While locating newspaper operations on the bay may have made sense in the past, it no longer is the best fit.” The Sacramento-based publishing conglomerate will use proceeds of the sale to fund its employee pension plan and repay corporate debt.
In the meantime, Miami Herald Media, which publishes The Miami Herald and El Nuevo Herald, will continue to operate from its headquarters for up to two years rent-free while its parent searches for a new location.
According to data from Real Capital Analytics, Genting Malaysia Berhad plans to redevelop the 14-acre waterfront property, located at 1431 North Bayshore Drive, into Resorts World Miami. That project would feature hotel, convention, entertainment, restaurant, retail, residential and commercial facilities.