Tag Archive for: contrarian capital management

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.

 

Boca Raton Office Complex Has New Owner

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Fountain Square, a 241,000-square-foot office complex in Boca Raton, traded for $54.5 million — a 47 percent increase over what it sold for three years ago.

Bridge Investment Group Partners of Sandy, UT bought the three-building development at 2600, 2650 and 2700 N. Military Trail from a joint venture between affiliates of Contrarian Capital Management LLC of Greenwich, CT, and NAI/Merin Hunter Codman in West Palm Beach.

The sellers bought the property for $37 million in 2014 from JP Morgan, which paid $63.5 million in 2007.

NAI launched a multimillion dollar capital improvement program to upgrade common areas and tenant suites. That resulted in more than 100,000 square feet of leases in the past two years and boosted occupancy from 62 percent to 90 percent.

The owners filled the building by negotiating leases for $15 and $16 per square foot, according to Neil Merin, chairman of NAI Merin Hunter Codman. He said rents today are in the range of $22 to $23 per square foot.

“It’s a real marker for the recovery of values in Florida,” Merin told CoStar News. “We did well — no doubt about it.”

 

Gil Tenzer, portfolio manager and director of real estate investments at Contrarian, said, “Fountain Square represents our commitment to partnering with local operators to invest in and turn around under-performing assets with high potential.”

Christian Lee and Jose Lobon of CBRE and Neil Merin, of NAI Merin Hunter Codman, represented the seller. The buyer did not have representation.

 

Source:  CoStar