Tag Archive for: boca raton

Colliers Tapped To Lease Newly Renovated East Boca Office

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Fresh off the heels of its recent acquisition and a multimillion-dollar capital improvement infusion, 1200 North Federal Highway is getting a new leasing team and rebranding refresh.

The Colliers South Florida office leasing team, led by Senior Vice President Darcie Lunsford, has been chosen to handle leasing and marketing of the 137,000-square-foot, all-glass midrise, which spans nearly a city block at the T-intersection of Federal Highway and Glades Road.

The building was acquired in August by veteran South Florida office owner and operator Allen Chelminsky. Since his acquisition, Chelminsky has invested more than $3 million to renovate common areas, restrooms, landscaping, fountains and the building exterior, update mechanical systems, upgrade the roof, restore the parking lot and garage, and add state-of-the-art security systems and new property-wide LED lighting. The four-story building also offers a newly refurbished onsite café, lushly landscaped indoor courtyard and exterior dining areas, reserved under-building executive parking, and electric vehicle charging stations.

“When we buy an asset, we don’t waste time or spare any expense to rapidly bring it up to our high-quality portfolio standards,” said Chelminsky. “There is no part of the building that we have not carefully designed and curated to offer corporate tenants the best business environment in Boca Raton.”

The reposition ushers in a new wave of modernized office space and leasing opportunities for the residentially-dense and highly amenitized east Boca Raton market.

“The building now looks and feels wholly renewed and refreshed while offering that secret-sauce combination— contemporary space with economic value— that we find missing in the East Boca market,” says Lunsford. “Historically, tenants in East Boca could either pay up for modern space or trade down to older, dated buildings. Now you can find both quality and value in what is arguably one of the most prominent and easily accessible locations in the Federal Highway submarket.”

Chelminsky maintains a long-standing real estate presence across the South Florida and the Treasure Coast, owning and operating more than 2 million square feet of commercial buildings from Miami to Port St. Lucie.

Palm Beach County Suburban Office Market Heats-Up

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Downtown West Palm Beach’s office market is thriving—but rising rents are making it harder for some longtime tenants to keep a foothold in the city core.

The surge is largely fueled by billionaire developer Stephen Ross, whose aggressive investment and development strategy has helped transform downtown West Palm into one of South Florida’s most competitive office markets. His projects have drawn a steady stream of high-profile tenants and helped accelerate the city and county’s long-term growth vision.

That momentum, however, has driven rents sharply higher across downtown, including in buildings Ross does not own. As a result, some established tenants are being priced out and are relocating to suburban areas of Palm Beach County, where new office development is beginning to follow demand.

One notable example is law firm Lytal, Reiter, Smith, Ivey & Fronrath, which last year moved most of its operations from the Northbridge Centre in downtown West Palm—where it had leased space for roughly 40 years—to Palm Beach Gardens. The firm cited renewal proposals that were several times higher than its previous rent, reflecting what some tenants describe as unsustainable downtown pricing.

According to local brokers, asking rents in excess of $100 per square foot are prompting more companies to explore suburban alternatives. That shift is helping spark new office construction outside the urban core.

In Palm Beach Gardens, Gatsby Florida—an affiliate of Gatsby Enterprises—is planning The Modern, an eight-story, 220,000-square-foot office building with a six-story parking garage at 11200 RCA Center Drive. The project, expected to deliver in 2027, is being positioned in part to attract out-of-state firms and executives relocating to South Florida. Gatsby acquired the site for $17.5 million in 2022.

Meanwhile, in Boca Raton, construction is underway on The Aletto, a two-building office campus totaling 140,000 square feet that is already approximately 60 percent pre-leased.

Developers and brokers say these projects reflect growing demand for high-quality suburban office space that offers modern amenities without downtown pricing.

Ross, who launched Related Ross after stepping back from New York-based Related Companies in 2024, has made downtown West Palm the centerpiece of his development focus. His portfolio includes roughly a dozen office buildings in various stages, along with residential, hotel, and mixed-use projects.

By leveraging longstanding relationships—particularly within the financial services sector—Ross quickly filled many of his office properties with out-of-state tenants. More recently, his firm has also pushed to position Palm Beach County as an emerging technology hub.

While downtown West Palm continues to gain national attention, the ripple effects of its success are reshaping the broader county office market—creating new opportunities, but also new challenges, for tenants navigating the region’s rapid growth.

Stream Realty Partners Secures Long-Term Lease Renewal At 900 Broken Sound In Boca

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Stream Realty Partners announced that Score At The Top Learning Centers and Schools has renewed its 15,737-square-foot headquarters lease at 900 Broken Sound, a premier Class A office building located at 900 Broken Sound Parkway NW in the highly coveted Boca Raton market.

The long-term lease renewal reaffirms the institution’s commitment to its Boca Raton community and secures its home in one of the region’s most competitive office markets.

Score At The Top, an educational organization with a nearly 50-year pedigree and more than 30 years of service in Boca Raton, provides an integrated suite of academic support services to students of all ages. Central to its offerings is Score Academy, a fully accredited private school serving fifth through 12th grade, delivering personalized instruction in a small-group academic environment from its headquarters at 900 Broken Sound. Complementing the academy’s school programs, Score At The Top also offers full-service tutoring, SAT/ACT and graduate-school test preparation, and individualized academic coaching.

The property totals approximately 117,000 square feet across five stories and features an array of amenities well-suited for educational and academic users, including dedicated green space for students, a private entrance for Score At The Top, and highly visible building signage.

Stream Managing Director & Executive Vice President Shay Pope, Senior Vice President Carlyle Coffin, and Senior Associate Dean Katz represented the tenant in the transaction.

“This renewal underscores Score At The Top’s strong commitment to Boca Raton and to providing personalized, high-quality academic support to students across the region,” said Pope. “Competition for quality office space in Boca Raton remains high, and securing this long-term lease extension ensures the organization can continue delivering exceptional educational outcomes for years to come.”

 

“Boca Raton has been our home for more than 30 years, and this space has supported our growth as we’ve expanded Score At The Top and built Score Academy into a truly personalized educational environment,” said Jason Robinovitz, Co-Owner/COO/General Counsel of Score At The Top. “The past ten years at 900 Broken Sound have given our students, families, and educators a place where meaningful learning can flourish. Renewing our long-term commitment here allows us to continue that work and gives us the room to grow even further in the decade ahead.”

The transaction marks Stream Florida’s fifth Boca Raton deal in 2025, totaling approximately 150,000 square feet, with additional transactions anticipated to close by the end of the year.

Boca Attracting Some Of The Highest Office Leasing Activity

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Boca Raton’s office leasing activity led the way in South Florida in 2022 and 2023, surpassing some more populous cities in the tricounty area, according to a recent analysis. It’s yet another indicator of the city’s growth — as well as the demand for office space across the region in a remote-working era.

Boca Raton’s total significant leasing activity last year was higher than any other city in Palm Beach County, according to recent data compiled by the city’s Office of Economic Development and originating from Colliers 2023 Quarterly Office Reports.

“We have led the county in 2022 and 2023 for significant leasing activity,” said Jessica Del Vecchio, Boca Raton’s economic development manager. “What that means is we’ve leased more square footage from the commercial office side of the business than any other city in Palm Beach County.”

Del Vecchio believes the surge of leasing activity began as the world began to emerge out of COVID-19 constraints. The pandemic triggered heightened interest in South Florida in general, she said, which has especially flourished in Boca Raton.

Boca Raton has a “built-in workforce,” Del Vecchio said, a product of the universities dotting the area, namely Florida Atlantic University, Lynn University and Palm Beach State College.

“We have a lot of smart, well-educated, talented people here, and I think that’s what the draw is that sets us a part in South Florida as a whole,” she said. “It’s so important to be by where the workforce is when you’re bringing a company into an area.”

The COVID-19 pandemic also proved the feasibility and success of a hybrid working model, making opportunities like physically working in Florida for a New York-based company possible.

“We don’t have to work on Wall Street,” she said. “We can keep a presence on Wall Street, but we can relocate to an area that we want to be in, that’s low taxes.”

The leasing activity momentum continues into 2024 with the announcement of six lease agreements at the Boca Raton Innovation Campus, or BRiC.

On Jan. 18, the CP Group, the developers behind the revitalization efforts to BRiC, announced in a statement four new tenants and two lease renewals with one expansion.

Those six tenants are: Engineering Express, a structural engineering firm; Hollywood.com, an entertainment company; LandAirSea (LAS), a GPS tracking system manufacturer; MODE Architects, a full-service architecture and design firm; EdgeMed, a revenue cycle management platform for medical organizations, and Orchid Bay Financial Holdings, an investment firm, which is also renewing its lease.

This is one part of a $100 million project to transform the former IBM facility into an illustrious campus full of contemporary amenities along with residential units, a hotel, restaurants, retail and more.

“We are continuing to see an influx of cutting-edge companies flocking to South Florida in search of flexible, yet turnkey, workspaces to meet the needs of their employees,” said Michael Perrette, general manager for BRiC, in the statement.

BRiC is yet another component of Boca Raton’s growth, which is only projected to progress as other projects such as the Center for Arts and Innovation continue to advance, and people keep taking advantage of recent additions to the city, such as the Brightline service.

“We are poised on making ourselves attractive to new investment and we engage our community stakeholders in conversations,” Mayor Singer said. “I think employers want to see a city like ours poised on what’s ahead for the next century.”

 

 

Source:  SunSentinel

Class A Office Building In Boca Fetches $99.5 Million

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KBS assisted in the acquisition of One Town Center, a 191,294 square-foot Class A office building in Boca Raton.

The property was acquired 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 trades on the Singapore Exchange Securities Trading Limits ticker as: OXMU. KBS serves as the U.S.-based asset manager for the portfolio, which included identifying and sourcing this asset on PRIME’s behalf.

One Town Center is a Class A property consisting of a 10-story office building and an adjacent parking deck. CP Group has been retained as on-site property management.

“This is one of three acquisition for the portfolio since listing on the Singapore Exchange in 2019,” says Marc DeLuca, Eastern regional president for KBS. “Acquiring One Town Center marks another strategic investment into a prime location and a premier asset. At 95% occupancy, One Town Center is one of the most desirable office properties in the Boca Raton market with strong in-place cash flow and a diverse base of creditworthy tenants.”

Boca Raton is increasingly drawing in residents due to its proximity to Fort Lauderdale and West Palm Beach, appealing climate and lifestyle, lower taxes and relative affordability, added DeLuca.

“Palm Beach County has seen a higher-than-normal influx of new residents as a result of the pandemic, and Boca Raton has become one of the nation’s most attractive markets for wealthy decision makers,” said DeLuca. “Companies such as Elliott Management, Citadel and Moelis have been encouraged to open satellite offices in Florida or allow their employees to be based there, and office tenants are drawn to the Boca Raton West submarket for its high connectivity, surrounding residential areas and access to great talent.”

According to Newmark, leasing activity was up 29% from deals seen a year ago and South Florida’s unemployment rate fell to 6.3% during the first quarter of 2021, with Palm Beach County, where Boca Raton is located, remaining the lowest unemployment rate in the region at 4.5%.

Boca Raton’s office market also features significant barriers to entry with prohibitive construction costs and no buildings currently under construction.

As one of the premier office properties in Boca Raton, One Town Center is a 10-story building with an adjacent 435-space parking garage and 274 surface parking spaces, resulting in a parking ratio of 3.7 per 1,000 square feet. The property is well positioned in the Midtown Boca Raton corridor, close to upscale executive housing and 1.2 miles from I-95. The asset also features close proximity to Florida’s Turnpike, the Boca Raton Airport, executive country clubs and housing communities, hotels and retail and dining options.

“KBS worked with PRIME to acquire a top-quality, well-located asset in a growing submarket of one of the strongest regions in the country,” says Allen Aldridge, asset manager for One Town Center and senior vice president of KBS. “This acquisition, which is within a five-minute stroll of 2.1 million square feet of dining and retail options, is in the best location in Midtown Boca Raton. It gives us another opportunity to apply our hands-on management strategy to deliver best-in-class, well-amenitized office space and services that exceed tenants’ expectations.”

Built in 1991 by Thomas Crocker, One Town Center features one of the two tallest buildings in the market. The property offers a plethora of on-site amenities including a high-end café, a restaurant, a fitness center and upgraded landscaping. The building is also within walking distance of numerous dining, shopping, fitness, salon and hotel amenities, with additional amenities accessible within a short drive. One of the most notable walkable amenities is the Town Center at Boca Raton, South Florida’s third-largest mall.

KBS is planning to implement several upgrades to the property, including a lobby refresh, restroom renovations, front-entry enhancements, building out a management office, updating the fitness center and locker rooms, and bringing vacant suites up to spec suite condition.

Chris Lee, vice chairman and Jose Lobón, executive vice president of CBRE brokered the sales transaction.

“KBS once again leveraged its deep understanding of the market and relevant fundamentals to purchase one of the most sought-after high-quality office towers in the South Florida market,” says Lee.

Attorneys Bruce Fischer, Tatyana Litovsky, Chrisdo Fan and Howard Chu, and paralegal Amanda Kennedy,  of global law firm Greenberg Traurig, LLP’s Orange County office, attorney  Jody Saltzman in Greenberg Traurig’s New Jersey office, and attorney Steven Landy in Greenberg Traurig’s Miami office,  represented PRIME as legal counsel in the acquisition.

“We were very pleased to represent KBS in this significant strategic transaction on behalf of PRIME,” says Fischer, Greenberg Traurig’s Chair of the West Coast Real Estate Practice and Co-Managing Shareholder of the Orange County office, who led the Greenberg Traurig team and represented KBS.

One Town Center is located at One Town Center Road in Boca Raton.

 

An Afternoon in Crocker Raton

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The South Florida Office Brokers Association meeting for June 2015 was held at One Town Center, the former Tyco building located within the complex now known as Boca Center. Our guest speaker Angelo Bianco of Crocker Partners told us that most locals still know Boca Center by its former name.

The iconic mixed-use complex located along Military Trail south of Glades Road in Central Boca Raton contains office space, a Marriott hotel, and upscale shops and restaurants. It has been used as a case study by the Urban Land Institute for excellence in a mixed-use project. The property was originally developed by Crocker and Company back in the mid-1980s and is still widely known by its original name, Crocker Center.

Over the years, the buildings were sold to Teachers Insurance and Annuity and Met Life. But over the last 12 months, Crocker Partners has invested more than $340 million in Boca Raton, reacquiring the shops and towers at Boca Center, The Plaza and One Town Center. Just north of Boca Center, Crocker also acquired the 277,000 sf One Boca Place, the longest and largest office building in the market. So even if Boca Center is not renamed back to Crocker Center, the running joke is that maybe the city should be renamed Crocker Raton.

What is not a joke is that Crocker Partners now controls 94% of the vacant Class-A space in the Boca Raton office market. According to Mike Erickson of CBRE, who leases the Boca Center properties for Crocker, “office rental rates north of $30 per sf triple net (which is over $40 including operating expenses) are the new normal in Boca Raton. Vacancies are down and construction is flat so we are going to continue to push rental rates.”

In order to justify the higher rental rates,  Crocker Partners will be upgrading the properties to compete in today’s market. One Town Center will be positioned to continue to appeal to private equity firms. The Plaza, the black office tower anchored by Wells Fargo, will be modernized and positioned as an ultra high-end concierge building targeted toward upscale local tenants. It will be priced at a monthly dollar amount rather than per square foot.”A contemporary building with timeless appeal” said Bianco. All of the buildings will also offer valet parking.

The biggest changes will involve the retail space,which will be re-oriented for street visibility. “Don’t turn your back on the street” said Bianco. The restaurant space at Boca Center will surround an open courtyard to create more of a synergy, and a gym and a spa will be added to the hotel’s lower 2 floors.

Plans also include the addition of multifamily units to the project to capitalize on the current urbanization trend. The idea according to Bianco, is to combine the upscale shopping experience of Miami’s Bal Harbor shops or Palm Beach’s Worth Avenue with the trendy local appeal of Delray Beach’s Atlantic Avenue.

Will Crocker be able to raise the bar on rental rates in Central Boca? Can they repeat their earlier success with an updated Boca Center? And will the City Council consider renaming the city Crocker Raton? We’d like your opinion.

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