Tag Archive for: christian lee

Class AA Office Tower Trades Hands In Broward’s Second $200M+ Transaction In Two Days

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On Thursday, CRE-sources reported the $208 million trade of 350/450 East Las Olas, the largest transaction in a decade… until Friday.

On Friday, Lone Star Funds announced that an affiliate of Lone Star Real Estate Fund VII, L.P., along with an affiliate of Highline Real Estate Capital LLC and Square2 Capital LLC, has acquired 401 East Las Olas Boulevard, marking the most significant office acquisition in Broward County in the past decade.

CBRE’s Institutional Office Group, led by Vice Chairman Christian Lee and Vice President Sean Kelly, represented the seller, a global investment manager. CBRE’s Debt & Structured Finance Group, led by Vice Chairmen Tom Traynor and Tom Rugg, Senior Vice President Amy Julian, and First Vice President Andrew Chilgren, represented the buyer in sourcing acquisition financing. The CBRE team also included Director Adam Spengler, Senior Associate Tom Rappa, Associate Henry Fenmore, and Financial Analyst Matthew Lee.

“Office properties in Fort Lauderdale’s CBD have thrived in the 2020’s, with strong absorption, sharp rent growth and declining vacancies. This is particularly true for top tier assets, which have outperformed because of an escalating flight to quality,” said Lee.

 

“With soaring construction costs and a dearth of remaining development sites in the Las Olas corridor, future supply will be tightly constrained and will result in continued strong rent growth for the area,” added Kelly.

The transaction closed February 13. While the terms were not disclosed, sources close to the deal reported the sale price to be in the neighborhood of $220 million, equating to more than $535 per square foot.

The 23-story, 410,561-square-foot Class AA office and retail tower—also known as Bank of America Plaza at Las Olas City Centre—sits on a full city block in the heart of Fort Lauderdale’s Las Olas Financial District. The property is home to a premier tenant roster, including Bank of America, Greenberg Traurig, Boies Schiller Flexner, Motorola Solutions, and UBS.

“We see a unique opportunity to invest in high-quality office assets that are among the best in their competitive set,” said Jérôme Foulon, Global Head of Commercial Real Estate at Lone Star. “The South Florida office market has strong underlying fundamentals, driven in part by in-migration trends and return-to-work mandates. At the same time, since new developments have all but stopped in recent years, some markets are experiencing shortages of office space in quality assets.”

 

“This acquisition represents our confidence in high-quality, well-located office assets that continue to demonstrate strong leasing fundamentals,” said David Moret, President of Highline Real Estate Capital. “401 has maintained an average occupancy of 94 percent since its inception and is positioned to continue to benefit from the evolving office market.”

 

Jay Caplin, Principal at Square2 Capital, added “with our previous repositioning success at 501 & 515 Las Olas Boulevard, we are confident we can amplify 401’s position as one of the most sought-after office towers in the state. Planned improvements will build upon 401’s status as the most amenitized office property in downtown Fort Lauderdale, featuring six on-site restaurants, a fitness center, and full-service banking.” Square2 Capital will manage the property for the new owner under the direction of Principal Mike Manno.

 

Accesso Completes Acquisition Of South Florida Class A Office Asset

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Accesso, a fully integrated investment manager and operator of multi-tenant office, mixed-use and multifamily assets, announced that it has acquired Sawgrass Lake Center, a Class A, 240,000-square-foot office property located at 13450 W. Sunrise Blvd. in Sunrise.

Sawgrass Lake Center sits in the heart of the Sawgrass Park submarket in Broward County and offers strong connectivity to municipalities throughout South Florida, including Fort Lauderdale and Miami.

“As more companies determine their long-term space needs and the recovery of the office sector continues to take shape, we’ve found opportunities to invest in strategically located assets with high-quality amenities and growth potential,” said John Rivard, Chief Investment Officer for Accesso. “Sawgrass Lake Center is a prime example. It is the dominant office property in a submarket with a fundamentally strong business climate, and offers direct proximity to a variety of retail and restaurant offerings and accessibility to main thoroughfares. We expect to continue to capitalize on the general uncertainly in the office market by opportunistically acquiring assets that meet our investment criteria while applying our proven operating platform skills to add value for tenants and partners alike.”    

Sawgrass Lake Center is among the tallest office buildings in Sunrise and is the only property in the submarket with garage parking, adjacent hospitality and walkable retail, including a Hilton DoubleTree hotel and Sawgrass Mills Center, the 2.3 million-square-foot, internationally renowned shopping and dining destination located directly across Sunrise Boulevard. The property resides in one of the most accessible locations in South Florida, sitting near the intersection of the Sawgrass Expressway and Interstates 595 and 75.

The property features a market-leading parking ratio of 5.4 per 1,000 square feet through its five-story structured parking garage and adjacent surface lot. On-site amenities include a grab-and-go café, fitness center, yoga studio, tenant lounge and conference center and outdoor seating area, as well as 50-plus dining options within a 10-minute walk. Sawgrass Lake Center has seen 136,000 square feet of leasing activity over the past two years. Select tenants include AT&T Inc., GoVine Insurance, Watches of Switzerland and StevenDouglas.

An abundance of prominent developments representing the ongoing densification and urbanization of Sunrise are located within a one-mile radius of the property, including: Radius Sunrise, a 32-acre mixed-use development; Metropica, a 65-acre site featuring an existing 263-unit condo building and proposed additional residential units, hotel rooms and retail; Sunrise 18, an 18-acre development surrounding the American Express Regional Headquarters, with proposed residential units and retail space; and the Amerant Bank Campus, a 140-acre planned project with proposed residential units, hotel rooms, a casino, an indoor water park and retail venues surrounding the Amerant Bank Arena, which is the home of the 2023-24 Stanley Cup Champion Florida Panthers of the National Hockey League (NHL).

Representing the seller in the transaction were Christian Lee, Sean Kelly, Tom Rappa and Matthew Lee of CBRE.

Christian Lee, Vice Chairman with CBRE, said, “The Sunrise office submarket has historically been highly attractive to tenants looking to pull potential employees from South Florida’s entire population base. The key to this is the tremendous access resulting from the intersection of I-75, I-595 and the Sawgrass Expressway, which provides favorable commute times to nearly all of our workforce. While there is some softness today, we are confident that a bright future is in the cards for this property and this submarket.”

 

CBRE Arranges Sale, Financing Of Boca Office Building

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CBRE Capital Markets has facilitated the $20 million sale of Boca Corporate Center, a four-story, 93,219-square-foot boutique office building located at 2101 NW Corporate Boulevard in Boca Raton.

The buyer, Larsen MacColl Partners, is a Pennsylvania- and Florida-based real estate investment firm with a focus on commercial properties in affluent, dense suburban markets and with primarily professional service tenants. Boston-based Spaulding and Slye Investments, with over 50 years of experience investing in the U.S., provided asset management services on behalf of the seller.

Exclusively representing the seller, the sale was facilitated by the CBRE’s Office Investment Sales team, led by Vice Chairman Christian Lee, Vice President Sean Kelly, Senior Associate Tom Rappa, and Financial Analyst Matthew Lee. CBRE’s Debt & Structured Finance team, led by Senior Vice President Amy Julian and First Vice Present Andrew Chilgren, secured a $14 million loan with Deutsche Bank on behalf of the buyer.

“The property’s location within the Midtown Boca micromarket provides immediate access to the City’s top retail destinations as well as I-95 and the Turnpike,” said Lee.

 

“The boutique nature of the property appeals to the smaller tenants that frequent the Boca submarket,” added Kelly.

Boca Corporate Center features recently renovated lobby and common areas, highly efficient floor plates, and walkable amenities. There is significant upside through marking the in-place rents up to today’s higher market rents.

“Boca Corporate Center’s strong occupancy history, in-place income and future upside provided abundant confidence on the future success of the asset throughout the lending community,” said Chilgren.

 

110 East Broward Blvd. Sells, Marks Fort Lauderdale’s Largest Office Transaction Of The Year

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Real estate and private equity firms Pebb Capital and Intalex Capital, in partnership with CDS International Holdings Inc. (CDS), announced the acquisition of a trophy ’Class A’ office building in the urban core of Fort Lauderdale.

The transaction, which closed on May 15, marks the largest ‘Class A’ office deal in downtown Fort Lauderdale this year.

Pebb Capital and Intalex Capital purchased 110 East, located at 110 East Broward Blvd., from Stockbridge for $43 million.

Christian Lee, Andrew Chilgren, Marcos Minaya and Sean Kelly of CBRE brokered the transaction on behalf of both the buyer and seller.

At the entryway to downtown Fort Lauderdale, 110 East is situated in the middle of 15,000 multifamily units developed in the last decade and is within walking distance to more than 30 restaurants and the famed Las Olas Boulevard. Conveniently located near major transportation hubs, the property is just two blocks from the Brightline Station and a 10-minute drive to Fort Lauderdale-Hollywood International Airport.

The 24-story tower consists of 343,500 square feet of space. During the pendency of the contract, Pebb Capital and Intalex Capital commenced leasing efforts and secured approximately 76,000 square feet of new tenancy.

The partnership is actively negotiating another 125,000 square feet of new leases to stabilize building occupancy years ahead of their anticipated underwriting. Travis Herring and Katherine Ridgway of Cushman & Wakefield have worked with Pebb Capital and Intalex Capital to oversee leasing velocity.

As a premier commercial offering, 110 East has the largest block of contiguous office space available in the market with panoramic views of the ocean, intra-coastal waterway and downtown. Adding to its prestige will be multi-million-dollar renovations to common areas, including bathrooms, fitness center, terraces and lobby, which follow substantial renovations completed by Stockbridge in 2021.

“This deal is a significant success for our portfolio, working nearly a year to finalize it as capital markets shifted,” said Todd Rosenberg, co-founder and managing partner of Pebb Capital. “South Florida has remained a bright spot in domestic office activity, with strong fundamentals to continue this trajectory of business and population growth. Combine this with Fort Lauderdale’s economic outlook and the value-add opportunity of 110 East, the conditions align with our office investment strategy of acquiring and developing more than 600,000 square feet in the tri-county area.”

Cushman & Wakefield’s Q1 2023 Broward County MarketBeat Office Report notes, in the coming quarters, an expected positive absorption year-to-date, with continued demand for larger leases in the Central Business District. The market also saw a historic record of overall office rates exceeding $55-per-square-foot this year. According to Intalex Capital Founder Bryson Ridgway, the deal and current market dynamics set in motion a concerted effort by the firms to aggressively acquire more South Florida office assets.

“110 East Broward is a great opportunity to take advantage of current dislocation in the office segment and capital markets,” added Bill Milmoe, President of CDS. “As soon as we completed our diligence and understood Pebb Capital and Intalex Capital’s business plan, we were enthusiastic to provide the LP capital for this very exciting project. We are bullish on South Florida and have the utmost confidence in the team to execute the business plan. The rapid pace of pre-closing leasing activity confirms that this is going to be a superlative opportunity.”

Greenwall Capital Management advised CDS in the transaction and Kapp Morrison, LLP provided legal representation to CDS.

 

PEBB Enterprises Purchases Boca Raton Office Property For $29.85 Million With Partner

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PEBB Enterprises, in partnership with Contrarian Capital Management, has acquired the Meridian Office Center in Boca Raton. The joint venture purchased the 11.14-acre property within The Park at Broken Sound for $29.85 million. The purchase marks PEBB’s third acquisition in the prestigious business park.

The 131,680-square-foot property consists of two single-tenant net leased buildings. Cross Country Healthcare occupies the 70,406-square-foot building located at 6551 Park of Commerce Boulevard, and Lexis Nexis occupies the 61,274-square-foot building located at 6601 Park of Commerce Boulevard.

The transaction closed on June 30. Professional Bank handled the financing for the purchase and Christian Lee, Jose Antonio Lobon and Marcos Minaya from CBRE represented the seller in the transaction.

“Our team is constantly looking for opportunities to expand our South Florida portfolio, especially in the thriving Boca Raton office market,” PEBB President and CEO Ian Weiner said. “We have always had great interest in properties located within The Park at Broken Sound and we are excited to be able to grow our footprint in the area.”

The Park at Broken Sound is a 700-acre mixed-use business park conveniently located directly off I-95. It offers free shuttles to and from the city’s Tri-Rail station and has easy access to lifestyle, entertainment and recreation centers nearby.

PEBB Enterprises also owns the 5900 Broken Sound building leased to Infinity Sales Group, and the ADT Building, which is home to the security giant’s corporate headquarters. Both buildings are in The Park at Broken Sound.

Over the last year, PEBB has been extremely active in the Boca Raton office market with acquisitions of the 308,305-square-foot Research Park at Florida Atlantic University and the 61,188-square-foot Eighteen Zero One Building located on North Military Trail.

 

MHCommercial Real Estate Fund II Acquires Office Complex For $45.9 Million

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MHCommercial Real Estate Fund II (“MHCREFII”), a discretionary real estate private equity fund formed by Dung Lam, Neil E. Merin and Jordan Paul, has closed on the purchase of Yamato Office Center in Boca Raton for $45,925,000, or $267 per square foot. in a joint venture partnership with an institutional real estate fund based out of New York.

Yamato Office Center is a 171,724-square-foot office complex comprising two Class-A office buildings located at 999 and 1001 Yamato Road. Yamato Office Center was approximately 71% leased at the time of the sale. Christian Lee, Marcos Minaya, and Sean Kelly with CBRE Capital Markets represented the seller, Adler Real Estate Partners (“Adler Partners”).

999 Yamato Road, built in 2000, is a three-story, 82,974-square-foot office building. 1001 Yamato Road, built in 1986, is a four-story, 88,750-square-foot office building. The complex is located near the entrance of the Park at Broken Sound and is situated on approximately 10 acres of prime Yamato Road frontage lending a generous parking ratio which includes covered parking. The Park of Broken Sound has recently benefited from a renaissance through the development of over 1,900 multi-family units and over 554,000 square feet of retail. Yamato Office Center’s prime location is a short drive to a large variety of nearby upscale amenities and 15 minutes away from transportation infrastructures including I-95, the Boca Raton Airport, Tri-Rail and the future Boca Raton Brightline Florida station.

MHCREFII is the second real estate fund for Merin, Lam and Paul after closing and fully deploying their first fund in December 2021 acquiring approximately $125 million in commercial real estate. MHCREFII launched in January 2022 and closed on its first acquisition in April 2022 with the $32.5 million purchase of EcoPlex® Office Center in West Palm Beach. Yamato Office Center is the second acquisition for MHCREFII with a target to acquire a total of $250 million of commercial real estate throughout the Southeastern United States over the next 12 to 18 months.

MHCREF and MHCREFII principals Neil E. Merin, Dung Lam and Jordan Paul stated, “We are very excited with the acquisition of Yamato Office Center at a purchase price well below replacement cost while also providing a tremendous opportunity to create value. Our plan is to reposition the asset as a premier Class-A office center primarily through capital improvements allowing Yamato Office Center to capture the robust demand for Class-A office space in Boca Raton.  Boca Raton is one of the nation’s most attractive communities for wealthy decision makers and Yamato Office Center is specifically located in one of Boca Raton’s most rapidly urbanizing micro-markets.”

Corey Winsett, Director of Acquisitions for MHCREF oversaw the acquisition and due diligence process on behalf of MHCRFII’s JV partnership. Financing for the transaction was provided by LoanCore Capital a leading institutional lender that has financed over $25 billion in commercial real estate loans since 2008. Steve Kay, Managing Director and JP Kost, Vice President structured the financing transaction on behalf of LoanCore Capital.

Elizabeth Jones and John Strickroot of the Shutts & Bowen law firm represented the purchaser on the transaction. NAI/Merin Hunter Codman will manage and lease the property.