Recent sales at Sanctuary Centre total more than 13,000 square feet, bringing the building close to sell-out. CLICK ON THE HEADLINE FOR MORE
Local government agencies are ramping up incentive programs. CLICK ON THE HEADLINE FOR MORE
Finding a “sweet spot” in South Florida’s shifting market, Sanctuary Centre’s recent sales have brought the 180,442-square-foot business center’s available condo office space close to sell-out.
“As local market inventory steadily shrinks, we’ve found renewed interest in condo office space from professional firms and regional companies that want an east Boca Raton presence, without top-tier pricing,” said Commercial Florida Realty Services Managing Principal George Sacks. Closing five sales since December, with two additional sales under contract, has reduced available Sanctuary Centre condo office space to under 10,000 square feet.
Sanctuary Centre, located at North Federal Highway and Yamato Road, was built in the mid-1980s, and its previous owner later converted the complex to condominium. GS Sanctuary Financial Investors Principal George Sacks purchased the 80,000 square feet that remained unsold in 2007, shortly before the weak economy and zoning changes dramatically impacted Boca Raton’s office absorption trends.
“It’s been a wild ride,” Sacks said. “We knew we had a great asset in a prime location, and by staying agile, we’ve kept Sanctuary Centre successful. When the economy turned in 2008 – and as relaxed zoning shifted momentum away from Federal Highway to Boca’s northwest section — we converted the remaining space to a lease program,” he added. “Now, with resurgence of Federal Highway’s business corridor well underway, we’ve reverted back to a sales focused campaign.
“We’re seeing demand from buyers with stable office space needs, who recognize that timing is everything,” Sacks said. “They compare buying vs. leasing, and look to lock in space costs at today’s low interest rates, before area rents start climbing.” Availability of 90 percent SBA financing limits the up-front investment companies need to make. The Sanctuary Centre office suites range from 850 to 8,500 square feet.
Recent sales at Sanctuary Centre have included:
As office property values gradually recover, Sanctuary Centre is drawing condo sales based on its unique position, Sacks said. “Our space’s property values are up 25 to 30 percent from the lows of the economic downturn. Companies see the advantages of investing on the upswing, while controlling future costs. Office condo space is rare in the Boca market, though,” he added.
“New buildings’ construction costs were too high to be practical for condo development, and there were very few condo conversions of existing buildings. As an older but beautifully maintained complex, we’ve found ourselves in a sweet spot for small space users who want East Boca’s business environment, plus proximity to I-95, the waterfront neighborhoods and western country club communities.”
For US Mortgage of Florida, a licensed lender with offices along the nation’s East Coast, Sanctuary Centre was a timely opportunity. “Purchasing our suite gave me more strategic control over my space than would be possible with leasing,” said Tony Acquaviva, US Mortgage of Florida owner. “It’s just minutes from my home to our office, and that’s a major advantage.”
While Broward County has experienced some positive momentum, ultimately, the success of Broward County’s office real estate market will depend upon sustained employment growth and job creation, according to Transwestern’s Broward County Office Market Report 1Q2013.
Local government agencies are ramping up incentive programs to include job growth cash incentives and capital investment tax credits that are intended to attract new-to-market employers despite the ongoing uncertainty that surrounds Washington.
The good news is that as market fundamentals continue to improve in 2013 and demand for office space advances, Transwestern expects the investor pool interested in Broward to grow as well and the investment market to become more competitive than in years past.
George Sacks Finds Renewed Interest In Condo Office Space
/in Done Deals, Trends/by SFOBA STAFFRecent sales at Sanctuary Centre total more than 13,000 square feet, bringing the building close to sell-out. CLICK ON THE HEADLINE FOR MORE
REPORT: Tech Responsible For Broward’s Favorable First Quarter Performance
/in Trends/by SFOBA STAFFLocal government agencies are ramping up incentive programs. CLICK ON THE HEADLINE FOR MORE