Coworking Operator Signs 29K SF Lease For Office Space In Boca Raton Amidst Leasing Surge

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As Boca Raton’s leasing surge surpasses other major office hubs, Venture X, the nation’s third largest coworking operator, has signed a long-term top floor lease at Palmetto Central in Boca Raton, encompassing 28,959 square feet.

Colliers’ Executive Vice President Derek Baker represented the tenant in negotiating the deal. CBRE’s Joe Freitas, John Criddle and Max Pawk represented the landlord, Grover Corlew, in the lease negotiations.

“I’m thrilled to have assisted Venture X in securing a premier location for their new flagship site in Boca Raton,” said Baker. “Venture X sought to leverage the flight-to-quality trend for its coworking customers, by focusing on only quality assets and ownership. Grover Corlew’s expansive redevelopment of Palmetto Central aligns perfectly with these goals, creating a best-in-class office experience in Central Boca Raton.”

Palmetto Central, located at 1489 and 1499 W Palmetto Park Road, stands out with its Class A office space in a state-of-the-art redevelopment immediately east off Interstate 95, in Boca Raton’s bustling market. The property’s prime location offers unmatched access to the East Coast, being just minutes away from Downtown Boca Raton, the Glades Corridor and the new Brightline Boca Raton Station.

The property is undergoing an ongoing and phased $30 million renovation which has included significant upgrades to the two building’s façades, lobbies, and common area corridors, all aimed at elevating the asset and tenant mix to the highest quality. The property’s standout features include floor-to-ceiling windows, custom high-quality buildouts, full-height hurricane impact windows, and premium amenities such as a tenant lounge, fitness center, conference facility, and monument building signage opportunities.

“With the high demand for modern office space in downtown Boca Raton, Palmetto Central stands out in terms of quality and location,” said Mark Corlew, Partner at Grover Corlew. “We’re excited to welcome Venture X, which will thrive thanks to the distinctive upgrades that have brought this property to its full potential.”

Grover Corlew is a real estate investment management group and developer of multifamily and office properties with a proven track record of over 100 years of combined industry experience in acquiring, transforming, and managing a diverse range of assets, including office, multifamily, and retail properties, throughout the southeastern U.S., with a focus on Florida. The firm has developed, owned, and managed over 10,000 units and more than 10 million sq. ft. of commercial space, specializing in investor and tenant relationships and projects that revitalize and stimulate local communities.

Kevin Priddy, the Venture X franchise owner, expressed excitement about Venture X’s expansion into Boca Raton, stating, “Opening a Venture X in Boca Raton is a thrilling milestone for us, it is the perfect market for our brand, with its dynamic business community and thriving entrepreneurial spirit. We are excited to provide a modern and collaborative workspace that caters to professionals, entrepreneurs, and small businesses, offering them the ideal environment to innovate, network, and grow.”

In the second quarter of 2024, the Boca Raton office market emerged as a prime destination for office tenants, leading leasing activity in Palm Beach County. Leasing across the Boca Raton East, West, and North submarkets surpassed 250,000 sq. ft., accounting for 38% of all Palm Beach County leasing during the quarter. This robust activity can be attributed to the highly educated workforce spurred by local institutions such as Florida Atlantic University, Lynn University and Palm Beach State College. Additionally, the new Boca Raton Brightline Station has improved connectivity, enabling companies to access talent from the broader South Florida region. With this advantageous convergence of factors, the outlook for the Boca Raton office market remains positive as we enter the second half of 2024.

 

Plantation Office Building Sells For $15.7M

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Zaragon sold an office building in Plantation for $15.7 million, a 5.5 percent discount from the firm’s purchase price six years ago.

Zaragon, a Chicago-based real estate investment firm, sold the two-story 1801 Building at 1801 Northwest 66th Avenue to Mentor, Ohio-based Steris, according to records. Steris is a health care and life science products and services company.

 

Source:  The Real Deal

Boca Office Building Trades At $18 Million Loss

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Gatsby Enterprises has purchased One Town Center, located at 1 Town Center Road in Boca Raton, for $82 million.

The asset last sold for $99.5 million.

In July 2021, KBS acquired the property from a joint venture between prominent commercial real estate firm CP Group, formerly Crocker Partners, and Siguler Guff & Co. for $99.5 million by Prime US REIT (PRIME), which traded on the Singapore Exchange Securities Trading Limits ticker as: OXMU. KBS served as the U.S.-based asset manager for the portfolio, which included identifying and sourcing this asset on PRIME’s behalf.

The 1991-built 10-story building totals 191,294 square feet and features a 151,392-square-foot parking structure. The building is one of the market’s tallest office buildings and was developed before annexation into the City, thus avoiding Boca Raton’s four-story height restrictions.

Wells Fargo provided a $51 million acquisition loan to Gatsby Enterprises.

Bridge Investment Group Takes 35% Hit On Broward Office Park

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Bridge Investment Group sold a 514,000-square-foot office park in Sunrise for $49M, a nearly 35% discount from what the firm paid for the property five years ago.

IMC Equity Group, a North Miami-based investment firm led by Yoram Izhak, purchased the 56-acre Sawgrass Technology Park at 601-1699 NW 136th Ave. It took a $30M mortgage from Israel Discount Bank of New York to close the deal, according to property records from property intelligence platform Vizzda.

Cushman & Wakefield’s Dominic Montazemi, Mike Davis, Mike Ciadella, Scott O’Donnell, Rick Brugge and Rick Colon represented Bridge in the sale.

Bridge purchased the property for $74M in March 2019 with a $59M loan from Capital One. The Utah-based investment firm, which has offices around the U.S., Seoul and Luxembourg, paid $144 per SF for the 11-building office park and sold it for around $95 per SF. The two-story buildings in the office park were built in 1984 and 1985, and Bridge pledged to invest $5M into capital improvements when it purchased the property. At the time, the property was 76% leased.

Online marketing material for the property indicates it is around 30% vacant, with 138K SF available, although some of that space could be occupied. Spaces at the property from 2K SF to 40K SF are listed by Cushman & Wakefield for $22 per SF.

Bridge completed tenant improvements at the property, including a new tenant amenity center with a café, lounge and fitness center, a marketing brochure says.

Sawgrass Technology Park is the second South Florida office property Bridge took a loss on this year. In January, the firm sold the 141K SF office building at 8600 NW 36th St. in Doral for $28.5M five years after paying $37M to acquire it. The 20-year-old property was 88% leased at the time of sale and traded at a roughly 10% capitalization rate.

 

Source:  Bisnow

Marcus & Millichap Facilitates Sale Of Two Boca Raton Office Buildings

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Marcus & Millichap announced the sale of two office buildings in Boca Raton.

Branded as The Greenhouse, the buildings are located at 5255 and 5301 North Federal Highway in Boca Raton. The assets sold for a combined $15,675,000.

5255 N Federal Hwy_Photo Provided by Marcus & Millichap

The-Greenhouse-Boca-Raton_Photo Provided by Marcus & Millichap

“The transaction of these office buildings demonstrates the continued strength of the office market and investor demand for office buildings in South Florida,” said Douglas Mandel, executive managing director investments. “Boca Raton has witnessed significant population growth in recent years, and the demand for leasing space remains strong,” continued Mandel.

Mandel and Zach Levine, investment specialists in Marcus & Millichap’s Fort Lauderdale office, had the exclusive listing to market the property on behalf of the seller, Wigder Investment Group, and procured the buyer, Bark Management.

The multi-story buildings comprise approximately 93,000 square feet and sit on approximately 5-acres at the corner of North Federal Highway (US-1) and Yamato Road, near the Interstate-95 interchange. The Greenhouse brand aims to provide start-up businesses with flexible, turnkey space at affordable prices.

The properties include private offices ranging from individual suites to multi-office suites, spanning from 150 to 5,000 square feet. They are currently 96% occupied. The buildings feature a café, lobby, conference rooms, on-site property management and ample parking. The Greenhouse caters to Boca Raton’s growing start-up industry and is situated in the heart of growth and rejuvenation in the immediate area, including the newly opened Brightline station.

 

International Workplace Group Leases 13,000 SF In Boca

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Office space provider International Workplace Group will open an outpost in Boca Raton, as part of an expansion in suburban and coastal areas of Florida.

International Workplace Group leased 13,000 square feet at 6501 Park of Commerce Boulevard, where it will operate through its Regus brand, according to the tenant’s news release. The branch is expected to open “soon,” according to the company’s website.

Led by Mark Dixon, International Workplace Group expanded to seven other outposts in Florida in a push to bring co-working and private offices, as well as meeting rooms to areas where workers generally have to drive to bigger cities for work.

The expansion brings the firm’s Florida footprint to 86 outposts.

 

Source:  The Real Deal