Tag Archive for: boca raton innovation campus

NKF Brokers Three Office Deals Totaling More Than 98,000 SF

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Newmark Knight Frank (NKF) announced the completion of three high-profile office deals in South Florida totaling more than 98,000 square feet.

The flurry of activity illustrates a recent NKF research report showing vacant office space in South Florida dropping to its lowest level since the Great Recession began more than a decade ago.

In the first deal, Oakland Sun Partners, LLC purchased 1 Dambrackas Way, a 48,671-square-foot Class B office building located in Sunrise. Originally built in 1985, 1 Dambrackas Way is also within a short drive to several nearby retail and dining destinations. The new owners purchased the building for $4.02 million.

NKF Executive Managing Director Mitchell Millowitz, NKF Senior Managing Director Ryan Rosalsky and Associate R.J. Ward represented the buyer.

Millowitz also executed a new lease agreement for e-commerce company Vitacost at 4700 Exchange Court at Boca Raton Innovation Campus. The 35,438-square-foot deal is part of an ongoing transformation for the online vitamin and healthy product supplier, which is a subsidiary of Kroger. Vitacost will relocate from its current headquarters at a one-story building in The Park at Broken Sound in August.

A former IBM corporate hub, Boca Raton Innovation Campus features an impressive array of onsite amenities that include a state-of-the-art fitness center, high-tech conference center, food hall, on-site accredited day care center and numerous walking trails. CBRE Executive Vice President Jeff Kelly represented the landlord, Crocker Partners.

“Vitacost conducted an extensive search of amenity-laden office properties in the region to fulfill its charge of finding a modernized, collaborative workplace environment with an abundance of natural light,” said Millowitz. “Boca Raton Innovation Center is the Southeast’s premier science and technology hub, and its proximity to talent and walkable amenities will provide Vitacost with a significant recruiting advantage in the years to come.”

In the third deal, Millowitz, Rosalsky and Ward represented AlphaStaff, a HR outsourcing firm, in its office relocation from Cypress Creek to Sunrise Corporate Plaza. AlphaStaff will occupy 14,604 square feet of space at the Class A office building in Sunrise beginning in January 2020. Built in 1999, Sunrise Corporate Plaza totals 107,748 square feet and is 100% occupied. Madelayne Garcia and Tom Kates represented the landlord, Stiles.

Two of the three transactions occurred in Broward County, which recorded 191 lease deals totaling more than 563,000 square feet in the first quarter of 2019. Broward also accounted for more than 58% of all Class B leasing activity across South Florida in Q1 2019, as limited blocks of availability in Class A buildings continued to aid the Class B sector.

Crocker Partners, Rialto Pay $179M For Boca Raton Innovation Campus

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Crocker Partners and Rialto Capital Management just paid $179.3 million for the Boca Raton Innovation Campus, in the biggest office sale in the tri-county region since 2016.

The joint venture purchased IBM’s former sprawling tech office complex at 4800-5002 T-Rex Avenue from Farallon Capital Management and Next Tier HD, according to Real Capital Analytics.

Eastdil Secured brokered the deal.

The 1.68-million-square-foot office park sits on 123 acres in Boca Raton near I-95. It was developed in the late 1960s and early 1970s by IBM as its North American Research and Development facility. IBM closed it in 1996.

Boca Raton Innovation Campus is about 71 percent occupied to tenants that include Bluegreen Corp., Tyco Integrated Security, TransUnion, and Modernizing Medicine, according to RCA.

Portions of the office campus could be redeveloped. The Palm Beach Post reported last year that Farallon and Next Tier were working with the city of Boca Raton to rezone parts of the property to allow for 720 apartments, 20 townhomes, a 120-room hotel and 81,000 square feet of retail space. A number of office parks in South Florida are being redeveloped to include apartments, retail and hotels, like the Park at Broken Sound in Boca Raton.

The property last sold for $128.7 million in 2015, according to RCA.

In 2017, the largest office sale was Rockpoint Group’s $155 million purchase of 1221 Brickell in Miami.

Boca Raton-based Crocker Partners owns 24 properties with an estimate value of $2.1 billion. The majority of the investment firm’s portfolio is in Palm Beach and Miami-Dade counties. Rialto is owned by Lennar Corp.

The Boca Raton Innovation Campus deal is the first partnership for Crocker Partners and Rialto, according to RCA.