A city just paid $24 million for a medical office building with paying physician tenants, and it says it wants the space for its own departments. That makes a small Florida trade a useful test of what happens to a medical building when the new owner is not buying it for the rent.
The short answer: The City of Coral Gables closed on October 30, 2026 on the 53,029 square foot medical office building at 475 to 495 Biltmore Way, buying it from ShareMD for $24 million, or about $453 a square foot. The property shares a block with City Hall, and the purchase gives the city the whole block. ShareMD, which paid $14.6 million in 2019, now operates as Parallel Medical Properties. The city has not published a timetable for its medical tenants, whose lease terms are not public.
- The buyer is an owner user, not an investor. City officials describe the purchase as a way to pull departments into one complex. The rent is useful for now, but it is not why the city bought.
- The seller’s return came from leasing. Occupancy rose 12 points and net operating income rose 40% during its ownership, by its own account.
- The open question is the tenants. Five practices are in a building whose owner wants the space. Nobody has published their lease expirations or any plan to move them.
Deal Facts
Confirmed means a statement from a party. We read ShareMD’s announcement as carried by CRE-sources, and did not locate the recorded deed or the signed purchase agreement. Reported means news coverage only. Status on November 3, 2026: closed.
The Real Estate
The building is described as four stories with floors of about 16,500 square feet, though the Coral Gables Gazette describes a three story and a four story building that share a parking lot with City Hall. Size figures run from 52,330 to about 56,000 square feet across sources; we use the 53,029 in the seller’s announcement.
The tenant list is short and specialty heavy. The Real Deal names Asthma and Allergy Associates of Florida, Florida Center for Allergy and Asthma Care, Gastro Health, Katz Regenerative Foot and Ankle, and Miami Ortho Spine. May listings showed about 5,000 square feet available at an asking rent of $45.50 a square foot. Reported
| Measure | 2019 purchase | 2026 sale |
|---|---|---|
| Price | $14.6 million | $24 million |
| Price per square foot on 53,029 square feet | About $275 | About $453 |
| Occupancy | 82% to 83% | 94% |
| Buyer’s stated purpose | Medical office investment | Consolidating city departments |
Per foot figures are calculated on one size for comparison. The 2019 purchase was part of a $33.2 million deal with a South Miami building, so its allocated price is as reported.
What the Numbers Do and Do Not Show
The gross gain is $9.4 million, which works out to about 7.4% a year over seven years before capital spending, financing and costs. We cannot tell you the seller’s real return, because it renovated the building and has not published what it spent. Net operating income rose 40%, which on its own would not get a buyer from $14.6 million to $24 million. Price rose faster than income, which implies a lower cap rate, a strategic premium, or both.
No cap rate has been disclosed and we will not invent one. The Gazette put rental income at current occupancy and asking rates at approaching $2 million a year. That is a gross estimate at asking rents, which works out to as much as 8.3% of the price before expenses, so it sets a ceiling and is not a yield. The city’s reasons for paying do not depend on that number. The building completes a block it already anchors, and a location like that has no substitute.
Why a City Pays This
Three pressures met. City Hall, about 500 feet away, faces a major renovation, with a $40 million agreement reported for the work, and key departments have already moved into 10,500 square feet of leased space at 2020 Ponce de Leon. Second, the city had a reserve it could not spend on operations. Agenda materials reported by the Gazette say the Building Reserve was set aside for expanding Building Department enforcement of the Florida Building Code. Third, officials expected revenue pressure from a homestead exemption measure on the November ballot, which argued for using restricted dollars instead of general funds. Mayor Vince Lago told Miami Today the city should “control its own destiny.”
The city waived competitive procurement because of the location, which required a four fifths vote. Coral Gables Magazine reports a 5 to 0 vote. The Gazette reports the city had not publicly said whether an independent appraisal supported the price as of May, and we did not find one since.
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What a Public Landlord Changes
For the tenants, the shift is from an owner whose business is keeping medical space full to one whose stated plan is to use the building for government. That does not mean anyone is leaving soon. A buyer normally takes a building subject to its existing leases, and the city has kept the seller’s manager for a year, which points to continuity in the near term. Still, a practice with a lease expiring in the next few years has a different planning problem than it had in September.
City spokesperson Martha Pantin told The Real Deal in May that Development Services has the “greatest current need,” and that Parking and Human Resources could also be considered. She also said the city had not decided what the building would be used for. That is the most recent public statement of intent we found.
Medical tenants are not easy to relocate. Procedure rooms, plumbing, imaging and allergy testing space are costly to rebuild, and patients tend to stay close to a known address. If this building eventually converts to government offices, Coral Gables loses up to 53,000 square feet of medical space from its central business district. Healthcare Discovery’s copy of Medicare’s clinician file lists 1,155 clinicians billing through 128 groups in Coral Gables, which gives a sense of the demand base. Those clinicians are not all in private offices, and the file does not measure vacant suites, so treat it as context.
There is also a tax side. The Gazette estimated that the purchase removes about $70,000 a year from the city’s own tax roll at its 5.559 mill rate, offset by rental income. How property taxes are handled in tenants’ expense pass throughs after the transfer has not been reported, and it is a fair question for any tenant on a net lease.
Looking for the clinicians in a market? The Healthcare Discovery directory lists physicians and advanced practice clinicians by location and specialty.
The Seller: ShareMD Becomes Parallel Medical Properties
ShareMD began drawing attention in 2019 as a medical co working concept that bought older South Florida buildings. It used the sale to rename itself Parallel Medical Properties, effective October 30, and says its portfolio, leadership and ownership are unchanged. Its president and managing director, Mario Gonzalez, says the name reflects aligning physicians, health systems and investors.
Two facts about the firm vary across sources and are worth flagging. The current portfolio is stated at 500,000 square feet in the seller’s announcement, while The Real Deal said 1 million in May. Its home base has been described as Southern California, Georgia and Jacksonville. Blanca Commercial Real Estate remains exclusive leasing agent for its Miami-Dade portfolio. Medicus manages all of the portfolio and now, for at least a year, this city owned building too.
Looking at medical office net leases? Healthcare Net Lease focuses on direct ownership of urgent care, medical office and pharmacy properties, including buildings for 1031 exchange buyers.
Timeline
- 1960Building completed, according to the leasing listing cited by Miami Today.
- November 2019ShareMD buys the property for $14.6 million from Leonard Boord, then 83% leased.
- 2022Building renovated, according to the same listing.
- June 2, 2026Commission unanimously authorizes the city manager to negotiate a purchase.
- July 2026Commission takes up the $24 million purchase agreement; Coral Gables Magazine reports a 5 to 0 vote.
- October 30, 2026Sale closes. ShareMD becomes Parallel Medical Properties.
- October 2027The initial one year management term would end, if it began at closing.
What It Means
For Medical Tenants
Read your lease now for renewal options, relocation rights and termination language, and ask the city for its plan in writing. Practices with fewer than three years left should price alternatives before they need one.
For Investors and Lenders
Downtown medical buildings next to government or hospital land can have a second kind of buyer who is less bound by cap rates. It is worth underwriting that option value, but only where a real strategic buyer exists. The city used a reserve, so this sale produced no new loan.
For Nearby Landlords
If the city moves departments in over time, specialty practices will need comparable space close by. The asking rent of $45.50 is a useful reference for the neighborhood, though not a signed lease.
What to Watch Next
- Tenant terms. Lease expirations and any relocation or buyout offers. This is the fact that decides how soon the building changes.
- The space plan. Whether Development Services, Parking or Human Resources move in, and which floors.
- Retrofit cost. A resident warned commissioners about costly retrofitting. The city has not published a budget that we found.
- The management contract. Whether Medicus is renewed after a year, which would signal that the city stays a landlord longer.
- The election and the ballot. Coral Gables holds its first November city election, and the homestead measure may affect city finances, and through them how quickly any conversion is funded.
Questions People Ask
Who bought the Biltmore Medical Center in Coral Gables?
The City of Coral Gables, from ShareMD, for $24 million. The sale closed October 30, 2026.
How much per square foot did Coral Gables pay?
About $453 a square foot on 53,029 square feet.
Why did Coral Gables buy a medical office building?
To control the full City Hall block and consolidate city departments in one complex, according to city officials.
Will the medical tenants have to leave?
No move has been announced. The city has kept the prior manager for an initial year, and tenant lease terms are not public.
What is Parallel Medical Properties?
It is the new name of ShareMD, adopted on the day of the sale. The firm says its portfolio, leadership and ownership did not change.
Related Deals
- ShareMD buys 475 Biltmore Way and a South Miami building for $33.2 million (November 2019)
For what this means for people who see doctors in the building, read The City Now Owns Biltmore Medical Center: What Patients Should Know on Healthcare Discovery.
How We Built This Page
Sale terms come from ShareMD’s announcement as carried by trade press, with city actions from local coverage of commission meetings. Per foot figures, the annualized gain and the gross rent ratio are our arithmetic. Clinician counts come from the CMS Doctors and Clinicians file held by Healthcare Discovery; it cannot isolate this address. We did not find the recorded deed, purchase agreement, appraisal, rent roll, lease terms or any loan on the property, and we did not read the city’s agenda documents directly.
Last verified November 3, 2026.
Sources
- CRE-sources: ShareMD completes $24 million sale of 475 Biltmore Way
- REBusinessOnline: City of Coral Gables acquires downtown medical office building
- The Real Deal: Coral Gables captures full block near city hall
- The Real Deal: Coral Gables’ possible medical office buy
- Coral Gables Gazette: $24 million acquisition on the commission agenda
- Coral Gables Gazette: How the city plans to fund the Biltmore Way acquisition
- Coral Gables Gazette: July commission agenda and Building Reserve
- Coral Gables Magazine: From City Hall, July 2026
- Miami Today: Coral Gables looks to buy medical building
- REBusinessOnline: ShareMD acquires two medical office buildings, 2019
- CMS Doctors and Clinicians national file, analyzed by Healthcare Discovery