A nearly 99,000-square-foot medical office building next to South Miami Hospital is up for sale, with 92% of its space leased and $3.96 million in net operating income.

Commercial real estate firm Transwestern announced Oct. 7 that its Southeast Investment Sales team would market 6262 Sunset Drive, an eight-story building in South Miami's medical district. The property sits adjacent to Baptist Health South Florida's South Miami Hospital campus and within walking distance of the South Miami Metrorail station.

The 98,999-square-foot building is 92% leased and generates $3.96 million in net operating income, according to the property's Revere CRE listing. Current asking rents are $46 per square foot on a triple-net basis, according to Transwestern's announcement.

Renovations expand medical office space

The seller converted the building's first five floors from traditional office space to medical use. Floors one through six have direct access to the parking garage.

The property has also undergone renovations to its lobby, tenant spaces and roof. The Revere listing identifies 2026 as the renovation year but does not name the seller.

Interval International, an affiliate of Marriott Vacations Worldwide, occupies nearly 54% of the building's rentable area on the upper floors, according to the listing. Its rent is $8.79 per square foot below the property's current $46 asking rate.

Floors seven and eight offer opportunities for additional medical office conversions. The listing identifies the eighth floor as a potential surgical center because of its high ceilings.

John Bell, senior managing director at Transwestern, said the property benefits from its proximity to established medical practices and South Miami Hospital. He described it as an opportunity combining "credit tenancy and conversion potential with significant upside from bringing rents to market."

Bell is leading the marketing effort alongside Kevin Markwordt, Von Baker and Jon Kleinberg, all members of Transwestern's Southeast Investment Sales team.

Medical district attracts investors

The property's marketing materials put the South Miami medical office market's vacancy rate at 4.1%, suggesting limited available space for medical tenants.

The Revere listing also estimates average household income within three miles of the property at more than $203,000.

The building's location near South Miami Hospital and the South Miami Metrorail station offers convenient access for medical tenants, patients and visitors.

Property previously sold for $36.7 million

An affiliate of Atlanta-based Ardent Companies acquired the building for approximately $36.7 million in a transaction recorded in December 2020, according to property records. The purchase was reported in January 2021.

At the time, the property was approximately 55% occupied and generated $1.2 million in net operating income. The latest marketing figures show substantial increases in both occupancy and operating income.

Before Ardent's acquisition, USAA Real Estate Company purchased the building for $40 million in 2015.

The current listing does not disclose an asking sale price or a projected closing date.