Mainstreet Capital Partners and Davis Cos. purchased the asset less than three years ago. CLICK ON THE HEADLINE FOR MORE
The property was sold for $22.75 million. CLICK ON THE HEADLINE FOR MORE
Less than three years ago, Mainstreet Capital Partners and Davis Cos. paid $28.3 million for two office properties and vacant land in Boca Raton.
Now the firms stand to recoup most of that money by selling just one of the assets – a five-story office building at 900 Broken Sound Pkwy NW.
The 115,986-square-foot building is under contract for $24 million, CoStar reported.
The buyer is an institutional investor affiliated with the NAI / Merin Hunter Codman in West Palm Beach, according to a person involved in the negotiations.
The other assets in the $28.3 million portfolio were 5500 Broken Sound Blvd. NW and a nine-acre parcel.
The building at 900 Broken Sound Pky once housed Nokia and Siemens. It’s now 80 percent leased to three tenants: CSL Plasma, Geosyntec Consultants and Score at the Top.
Peter Reed, a Palm Beach County office broker not involved in the sale, said the transaction is part of a trend in which landlords are cashing out more quickly than they have in the past. He noted that recent owners of the Esperante and CityPlace Tower office buildings in West Palm Beach also have sold those properties after only a few years.
“That’s become more the mindset of owners,” said Reed, with Commercial Florida Realty Services in Boca Raton. “Owners aren’t necessarily holding on for five, seven, 10 years anymore.”
900 Broken Sound Pky was built in 1989 in what was then known as the Arvida Park of Commerce, a 700-acre corporate business park. It has since been renamed The Park at Broken Sound as part of a rebranding that also included a rezoning that cleared the way for retail and residential. The additional uses make the park more attractive to investors, brokers say.
“The [rezoning] has been a big driver in value,” said Brady Titcomb, a broker with JLL. “Now there’s a whole neighborhood that you didn’t have before.”
Source: CoStar
CBRE has arranged the sale of Courthouse Commons, a 85,668 square-foot, Class A office building located at 444 West Railroad Ave.
The property was sold for $22.75 million, property records show, by a joint venture between IP Capital Partners and Fir Tree Partners to FoxRock Properties, who was represented by CBRE’s Kevin McCarthy and Kevin Probel.
“This was a highly beneficial off-market transaction for both the seller and the buyer,” said Kevin McCarthy, first vice president at CBRE. “Our client, FoxRock Properties, was looking to purchase a building in downtown West Palm Beach. So, we connected with one of our past leasing clients, IP Capital Partners, to evaluate selling Courthouse Commons. Working with the buyer and seller, we were able to reach a mutually agreeable purchase price, and all parties are highly pleased with the outcome.”
Current tenants at the property include General Services Administration (GSA), which occupies 34,921 sq. ft., Law Firm Burlington and Rockenbach, as well as US Legal Support. Furthermore, Granite Telecommunications will lease 20,841 sq. ft. on the second floor. New ownership plans to install a 6,000-sq.-ft. gym in the first floor, which is currently vacant, and bring in a breakfast/lunch tenant to the small restaurant vacancy on the ground floor.
Building amenities include an attached 5-story parking garage with a covered pedestrian sky walk, providing direct access to the County Courthouse and is just minutes from Palm Beach International Airport and within walking distance to Clematis Street retail, the new Brightline train station and upscale lifestyle center at CityPlace.
According to CBRE’s Q1 2018 Palm Beach Office Report, sales activity in Palm Beach County finished with transactions totaling 274,183 sq. ft. Investors continue to pursue value-add opportunities in Palm Beach County, and it is anticipated that the area will continue to demonstrate positive momentum in 2018.
The SFOBA is a network of Professional Office Leasing Brokers in South Florida. Membership is by invitation only – landlord and tenant representatives are included.
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Email: admin@sfoba.com
Boca Office Building Goes Under Contract For $24 Million
/in Done Deals, News/by SFOBA STAFFMainstreet Capital Partners and Davis Cos. purchased the asset less than three years ago. CLICK ON THE HEADLINE FOR MORE
West Palm Beach Office Building Sells
/in Done Deals, News/by SFOBA STAFFThe property was sold for $22.75 million. CLICK ON THE HEADLINE FOR MORE