Boca Raton Office Complex Has New Owner

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Fountain Square, a 241,000-square-foot office complex in Boca Raton, traded for $54.5 million — a 47 percent increase over what it sold for three years ago.

Bridge Investment Group Partners of Sandy, UT bought the three-building development at 2600, 2650 and 2700 N. Military Trail from a joint venture between affiliates of Contrarian Capital Management LLC of Greenwich, CT, and NAI/Merin Hunter Codman in West Palm Beach.

The sellers bought the property for $37 million in 2014 from JP Morgan, which paid $63.5 million in 2007.

NAI launched a multimillion dollar capital improvement program to upgrade common areas and tenant suites. That resulted in more than 100,000 square feet of leases in the past two years and boosted occupancy from 62 percent to 90 percent.

The owners filled the building by negotiating leases for $15 and $16 per square foot, according to Neil Merin, chairman of NAI Merin Hunter Codman. He said rents today are in the range of $22 to $23 per square foot.

“It’s a real marker for the recovery of values in Florida,” Merin told CoStar News. “We did well — no doubt about it.”

 

Gil Tenzer, portfolio manager and director of real estate investments at Contrarian, said, “Fountain Square represents our commitment to partnering with local operators to invest in and turn around under-performing assets with high potential.”

Christian Lee and Jose Lobon of CBRE and Neil Merin, of NAI Merin Hunter Codman, represented the seller. The buyer did not have representation.

 

Source:  CoStar

Cushman & Wakefield Negotiates 60,000 SF In Office Leases In Pembroke Pines

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Cushman & Wakefield announced that it has negotiated seven new office leases at Pembroke Pointe 880 totaling 59,130 square feet.

The office leasing team of Executive Director Deanna Lobinsky, Executive Director Travis Herring, Director Katherine Ridgway and Associate Chase Kulp executed the leases on behalf of building owner and developer Duke Realty.

Pembroke Pointe 880 is a 143,355-square-foot Class A office building developed in 2015. Lobinsky, Herring, Ridgway and Kulp were selected to lease the building by Duke Realty in October 2016. The team has secured leases with DeVry Education Group; Evolution Lighting, LLC; CoreStaff; Boxy Charm; Costa Cruise Lines; Kronos; and QEO Group, LLC.

“We have been very pleased with the leasing velocity at Pembroke Pointe 880 this year. The property is uniquely positioned in the tight Broward County office market to capitalize on the pent-up demand for new, accessible Class A space in a state-of-the-art building,” said Lobinsky. “We’ve also been extremely fortunate to work with a very proactive owner in Duke Realty. They’ve put an incredible team in place and allotted the resources needed to assist in lease-up.”

DeVry Education Group

DeVry Education Group leased 13,980 square feet at Pembroke Pointe 880, expanding its presence in the Southwest Broward submarket.

DeVry Education Group is a leading global education provider and the parent organization of American University of the Caribbean School of Medicine, Becker Professional Education, Carrington College, Chamberlain College of Nursing, DeVry Education of Brazil, DeVry University and its Keller Graduate School of Management, Ross University School of Medicine and Ross University School of Veterinary Medicine.

Rashid Siahpoosh of Newmark Grubb Knight Frank represented DeVry Education Group in the lease negotiations.

Evolution Lighting, LLC

Evolution Lighting LLC leased 9,684 at Pembroke Pointe 880, relocating its headquarters from Miami. The lighting manufacturer and distributor provides high-end light fixtures throughout North and South America from its offices and warehouses in Connecticut, North Carolina, Mississippi and Ontario, Canada. Evolution Lighting LLC employs 45 people at Pembroke Pointe 880.

Senior Vice President Doug Okun of Continental Real Estate Companies negotiated the lease on behalf of Evolution Lighting, LLC.

CoreStaff

CoreStaff, a Houston-based staffing company, leased 8,072 square feet at Pembroke Pointe 880 to serve as a regional office for 36 employees. CoreStaff specializes in staffing positions in accounting and finance; administrative and clerical; call center and customer care; human resources, information, records management and library services; as well as light industrial and assembly.

Associate Director Clay Sidner of Newmark Knight Frank represented CoreStaff in the lease negotiations.

Boxy Charm

Boxy Charm leased 11,032 square feet for its headquarters at Pembroke Pointe 880. The Miami-based beauty product distributer employs 65 people in this space.

Irving Diaz, Managing Director of Office Equities, negotiated the lease on behalf of Boxy Charm.

Costa Cruise Lines

Genoa, Italy-based cruise line Costa Cruises leased 4,256 square feet at Pembroke Pointe 880. The Carnival Corporation subsidiary, which currently operates a fleet of 15 ships, relocated its U.S. headquarters and 30 employees from Hollywood, FL.

Doug Campbell, President of the Campbell Group, represented Costa Cruise Lines in the lease negotiations.

Kronos

Kronos leased 7,175 square feet at Pembroke Pointe 880. The Lowell, MA-based company, which employs 5,300 people worldwide, provides cloud applications for workforce management as well as consulting, education and support services. Kronos employs 40 people at Pembroke Pointe 880.

Director Ryan Levy of Cushman & Wakefield represented Kronos.

QEO Group, LLC

Irving, TX-based QEO Group, LLC leased 4,931 square feet at Pembroke Pointe 880 where it employs 20 people in a second corporate office. QEO Group, LLC provides commercial transportation insurance, specializing in the energy, local delivery and construction industries.

Executive Director Jeff Holding and Senior Director A.J. Belt of Cushman & Wakefield negotiated the lease on behalf of QEO Group, LLC.

Pembroke Pointe 880 features 36,111-square-foot floor plates designed for maximum efficiency and space utilization; upscale lobby and common areas; ample parking for tenants (5.5 parking spaces per 1,000 rentable square feet); and Interstate 75 frontage with high-visibility signage opportunities. The building is currently 86 percent leased.

 

Cresa South Florida Represents Top Healthcare Company In 89,000 SF Lease

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TA Realty’s property management arm announced that Cresa Managing Principal Alexander H. Brown, has negotiated a lease of more than 89,000 square feet of space at the 1801 Building in Plantation, owned by TA Realty, to Cresa’s client, Envision Physician Services.

Envision plans to open in the Summer of 2018, and is part of a conglomerate of well-known companies, including Envision Healthcare, AMR, AMSURG, and Envision Health, together a highly reputable, multi-specialty medical group, and one of the top healthcare companies in the country. Alex led a team of seven local Cresa team members to collaboratively find the perfect solution for their client.

In a statement from Cresa, Alex Brown noted, ‘The Cresa / Envision relationship is an important value-add, because Cresa’s pure-tenant representation platform allowed Envision to consult with Cresa to provide conflict-free advocacy. Envision was evaluating moves to other states as well, and Cresa’s offices around the nation were able to provide market knowledge, and leverage, in each of the selected cities across the U.S. Months of market leverage and financial analysis, plus investigating state and local incentives, helped to focus-in on the Plantation market. The Cresa team was able to procure extremely favorable terms for Envision at the 1801 Building, and Cresa was able to execute a transaction where Envision could continue to grow and provide healthcare leadership in South Florida.”

The 89,143-square-foot lease at the 1801 Building in Plantation is within a two-story, 102,000 square-foot building which was constructed in 1983 and underwent a series of renovations this year after three long-term tenants left. The building’s lobby, common-areas, elevator and parking lot were all upgraded to attract larger users.

 

BHI Energy Relocates And Expands, Inks 17,000 SF Office Lease

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Cushman & Wakefield announced that it has negotiated a a 16,693-square-foot office relocation lease with BHI Energy at 500 Columbia Drive in Palm Beach County.

Cushman & Wakefield Director Kevin D. Landers negotiated the new lease on behalf of BHI Energy, which relocated approximately 100 employees from 901 Northpoint Business Plaza in West Palm Beach, where it occupied approximately 12,000 square feet. Mike Eissey of PM Hanna Management, LLC represented building owner JJR Properties, Inc.

Weymouth, MA-based BHI Energy provides specialty services and staffing solutions to the power generation, energy and government markets. Founded in 1979, BHI Energy employs more than 8,500 experienced project management and technical, professional and craft labor operators at over 130 global project locations. The company has offices throughout North America, including two Florida locations in West Palm Beach and Altamonte Springs. The West Palm Beach office houses BHI Energy’s Storm Hardening Design Project Team.

“BHI Energy had expanded several times in its former space and had finally outgrown the building altogether. Their goal was to remain proximate to the FP&L Command Center in West Palm Beach, and through a very focused site selection process, we were able to identify space, negotiate a lease and relocate within 90 days of beginning the search,” said Landers.

“Kevin and his team at Cushman & Wakefield were incredible partners throughout this entire process,” said J. Robert Beckman, BHI Energy Executive Vice President. “They remained focused on our needs throughout, discovered numerous potential locations, negotiated expertly on our behalf and were still able to close in a timeframe that met our business needs.”

500 Columbia Drive is part of JJR Properties’ seven-building office park on Columbia Drive in northeast Palm Beach County. The single-story, concrete block and stucco buildings provide attractive and well-appointed space in a campus-like setting with free parking just steps from tenant entries.

The office park is located in the heart of the Palm Beaches with convenient access to Palm Beach Lakes Boulevard, Okeechobee Boulevard, Intestate 95, Florida’s Turnpike and Palm Beach International Airport.

 

Cushman & Wakefield Negotiates 50,000 SF Office Relo, Expansion Lease

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Cushman & Wakefield negotiated a ±50,000-square-foot office relocation and expansion lease with South Florida Bible College & Theological Seminary (SFBC&TS) at 2200 SW 10th Street in Deerfield Beach.

Freitas

Criddle

Managing Director John K. Criddle and Senior Associate Joseph J. Freitas secured the long-term, full-building lease on behalf of Boca Raton-based investor Fields Realty. Criddle and Freitas were named exclusive leasing and sale agents for the former plug-and-play call center in Broward County’s Colonnade Business Center earlier this year. Casa Bella Realty’s Joe Souza represented SFBC&TS.

SFBC&TS was established as a Bible Institute in 1985, before evolving into a Bible College and Seminary in 1988. The first graduating class consisted of 80 students in 1990. It currently has an enrollment of more than 400 students. SFBC&TS relocated from 1100 South Federal Highway, where it occupied ±10,000 square feet.

“This location met the tenant’s expansion needs and was very accessible for students attending classes from all areas of Palm Beach and Broward Counties,” said Criddle. “SFBC&TS has been growing rapidly and this property will provide them with the expansion capabilities they have been looking for.”

2200 SW 10th Street was developed in 1995 on a 5.4-acre site. The building offered move-in ready call center space that translated well to an academic environment with elevated ceilings, 300 workstations, more than 36 offices, multiple conference rooms, a training room, a kitchen/break room and a server room. The building is situated on the south side of SW 10th Street, minutes from the Sawgrass Expressway, Interstate 95 and Florida’s Turnpike and less than two miles from the Deerfield Beach and Pompano Beach Tri-Rail stations.

 

Chewy.com Expands To 100,000 SF At DCOTA

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Chewy.com, an online retailer of pet supplies, leased an additional 27,200 square feet at its headquarters building in Dania Beach, the Design Center of the Americas (DCOTA).

The lease deal brought the company’s total space at the DCOTA to 100,000 square feet, according to a news release by a corporate affiliate of developer Charles S. Cohen, who owns the building.

The news release by Cohen Brothers Realty Corporation described the lease as “long-term” but did not disclose the terms.

According to the release, the asking rate at DCOTA’s “B” building at 1855 Griffin Road is $36 per square foot.

The lease deal indicates Chewy.com will remain in its Dania Beach headquarters for a while despite the sale of the company last spring to Phoenix-based pet supplies retailer PetSmart, which reportedly paid $3.35 billion for the South Florida company.

In August, Chewy.com announced plans to move its customer-service operations from DCOTA to Hollywood. The relocation would put 1,100 employees of Chewy.com at the Hollywood Hills Plaza at the corner of Hollywood Boulevard and Park Road, making the company one of the city’s largest employers.

 

Source:  The Real Deal