The city agreed to pay $24 million for the medical office building at 475-495 Biltmore Way, $2.9 million above its higher appraisal. Closing was due by Friday.
Coral Gables agreed to pay $24 million for the medical office building at 475-495 Biltmore Way. That is $2.9 million more than the higher of the two appraisals the city ordered, and $5.5 million more than the lower one.
The purchase agreement set the closing for on or before Friday, Oct. 30. The City Commission approved the deal 4-0 on Aug. 25, with Commissioner Ariel Fernandez absent, according to the signed Ordinance 2026-30.
The ordinance says the city is buying the building “for the purpose of consolidating multiple City departments into a single facility.” It sits next to the city’s Development Services Department at 427 Biltmore Way, which city staff called a “unique location” in their cover memo.
What the city is buying
The property is two parcels, both owned by 475 Biltmore MOB LLC, an Encinitas, California, company, according to the Miami-Dade Property Appraiser summaries filed with the ordinance (475 Biltmore Way and 495 Biltmore Way).
- Size: 53,029 square feet of rentable space across four stories in two buildings, on 0.43 acres, according to the Integra Realty Resources appraisal
- Suites: 33, from 424 to 4,243 square feet, the same appraisal says
- Occupancy: 93.7% at the June inspection, according to the Mercatus Valuation appraisal, with retail on the ground floor and office suites above
- Tenants: the city takes over the existing leases and security deposits under the purchase agreement
At $24 million, the city is paying about $453 a square foot of rentable space.
The price against the appraisals
City code requires two appraisals by MAI-designated appraisers when the city buys property worth more than $250,000, the purchase agreement says. Both are posted with the ordinance.
| Valuation | Date of value | Amount |
|---|---|---|
| Purchase price | Agreement signed June 30, 2026 | $24,000,000 |
| Integra Realty Resources appraisal | Dec. 3, 2025 | $21,100,000 |
| Mercatus Valuation appraisal | June 16, 2026 | $18,500,000 |
| County market value, both parcels | 2025 tax roll | $12,600,000 |
The county figure adds the property appraiser’s 2025 market values of $8 million for 475 Biltmore Way and $4.6 million for 495 Biltmore Way. Assessed values for taxes often run below sale prices.
The commission waived “certain requirements” of the city’s rules on buying and selling public property to make the deal, the ordinance says. City code allows that waiver on a four-fifths vote. The ordinance does not list which requirements were waived.
After the first reading, the seller agreed to give the city a $20,000 credit at closing toward repairs found in inspections. It also agreed to make about $6,180 in repairs itself, the ordinance says.
Where the money comes from
The $24 million comes from the city’s Building Reserve, under a budget amendment in the ordinance. The ordinance says that money was set aside for “necessary expansions for the operation of the Building department’s enforcement of the Florida Building Code.”
The deal took three votes:
- June 2: the commission let the city manager negotiate terms, in Resolution 2026-165
- July 7: the ordinance passed on first reading, according to the city’s legislative record
- Aug. 25: the ordinance passed 4-0 on second reading
The same night, the commission voted 4-0 to keep Medicus Asset Management LLC, the building’s current manager, running the property once the city owns it. Resolution 2026-233 waived competitive bidding for a one-year contract that the city manager can renew year to year. It also lets the city keep the building’s current janitorial, elevator, air-conditioning and other service vendors without bidding.
The agreement lets the city push the closing back by up to five business days. The city had not posted an announcement of the closing by Friday evening, and Coral Gables Today could not reach the county’s property records to confirm a recorded deed.
What it means for you
- Existing leases carry over. The city takes over the tenants’ leases. Nothing in the ordinance or the agreement sets a date for city departments to move in, or says which departments would.
- It is paid from reserves. The ordinance takes the money from the existing Building Reserve, not from a new bond.
- Permits and inspections stay at 427 Biltmore Way until the city says otherwise. Our building permits and zoning guide has the current addresses and contacts, and who to call at City Hall lists the departments.
- The full record is public. The ordinance, both appraisals and the signed agreement are attached to the legislative file.
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