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Miami Beach building, Lincoln Place at 1601 Washington Avenue, has been taken over by a lender due to a ground lease in lieu of foreclosure deal. The previous owner, Nightingale Properties, owed Granite Point Mortgage Trust $84.7 million on the mortgage for the eight-story mixed-use building. Located in a prime spot, the property boasts 110,000 square feet of office space and 30,000 square feet of retail space.

    Brokers say that Granite Point will likely attract buyers seeking a price discount for Lincoln Place, which has been at the center of controversy surrounding Nightingale CEO Elie Schwartz's downfall. Schwartz pleaded guilty to wire fraud in New York federal court this month, facing up to 20 years in prison.

    Despite the distressed situation, demand is high in the Miami-Dade County market for buildings with large blocks of office space in prime spots. However, buyers are likely to try to negotiate a lower price. "Generally speaking, when a lender takes over a property, most buyers will try to get it at a discount," said Jordan Gimelstein with Inhouse Commercial.

    Buyers seeking distressed South Florida office properties typically demand price haircuts, according to Stefano Santoro with Disruptive Real Estate. "No one is going to pay more than the debt on a building," he said. The property's ground lease was previously listed for sale at $82 million, but the deal fell apart due to a dispute over a $2 million deposit.

    Current tenants of Lincoln Place include Regions Bank, Doorloop, and Teleperformance Group. The land underneath the building is owned by the city of Miami Beach.