Tag Archive for: ecoplex

JV Purchases 100,525 SF Office Building In West Palm Beach For $32.5 Million

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A joint venture between affiliates of West Palm Beach-based MHCommercial Real Estate Fund II (“MHCREF”), a discretionary real estate private equity fund formed by NAI/Merin Hunter Codman principals Dung Lam, Neil E. Merin and Jordan Paul, and Waterfall Asset Management (“Waterfall”), a New York-based SEC-registered institutional asset manager with approximately $9.8 billion in assets including committed capital under management, has closed on the $32.5 million purchase of the fee simple interest in EcoPlex®, a 100,525-square-foot office building located at 1641 Worthington Road in West Palm Beach.

Built in 2008, EcoPlex® is 87 percent leased to a diversified tenant roster with five or more years of weighted average lease term. EcoPlex® was the first speculative office building in West Palm Beach and only the second in South Florida to achieve the LEED® Gold Certification. It is designed to withstand winds of a Category 4 hurricane and is equipped with three generators with integrated, above ground diesel fuel tanks, and rainwater recycling system. The four-story property also features a fitness center with showers and lockers, a lush outdoor plaza, an attached five-story parking structure, and fiber optic service. EcoPlex® rewards businesses with a healthier workplace, maximum energy efficiency, minimal environmental impact, significant cost savings, and increased productivity.

EcoPlex® is located in the Centrepark Office District, a 69-acre mixed-use project strategically located just off Australian Avenue across from Drive Shack and directly adjacent to the Hampton Inn and Garden Inn hotels. EcoPlex® offers convenient access to downtown West Palm Beach’s amenity base including high-profile restaurants and business destinations including Rosemary Square and the Palm Beach County Convention Center.

Additionally, the property’s location offers strategic access onto the region’s major transportation infrastructure, including Interstate 95 (less than 1 mile away), Palm Beach County International Airport (1 mile away), Tri-Rail, Brightline Florida Trains (2 miles away), and the Florida Turnpike (4.6 miles away).

The acquisition represents the second Palm Beach County joint venture between MHCREF and Waterfall following their successful acquisition of the Golden Bear Plaza in Palm Beach Gardens in May 2020. The project also represents the first purchase for MHCREF’s new fund which is projected to acquire between $200 and $250 million of commercial property throughout the Southeastern United States over the next 18-24 months, following the successful acquisition of approximately $115 million of property in its initial fund which was fully invested in December 2021.

MHCREF principals Neil E. Merin, Dung Lam and Jordan Paul stated, “We are very pleased to kick off our second fund by purchasing one of the premier office buildings in our hometown of West Palm Beach.  West Palm Beach has emerged as one of the premier office locations in the United States and EcoPlex® provides its tenants with outstanding access to all the area has to offer. As the only LEED® Gold Certified building in the city with a full backup generator system and construction engineered to withstand a category 4 hurricane, EcoPlex® offers its tenants a unique value proposition in the highly sought-after West Palm Beach market.”  

Patti Unti, Managing Director at Waterfall stated, “We are excited to be partnering with MHCREF on our second transaction in southeast Florida. The MHCREF team brings a deep bench of talent to our partnership along with a long history of operating within the West Palm Beach market. The EcoPlex® project offers a differentiated office approach to a sub-market we believe is well-positioned for future growth.” 

Corey Winsett, Director of Acquisitions for MHCREF oversaw the acquisition and due diligence process on behalf of the MHCRF/Waterfall JV. 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 with the team of Managing Directors Lesley Sheinberg and Barbara LeBrun, SIOR.

 

West Palm Beach Becoming Corporate Tenant Attraction

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Has the increase in leasing activity finally trickled northward? Commercial real estate brokers say they’re starting to notice an uptick in leasing by companies moving businesses downtown.

One example: The leasing activity at the CityPlace Tower office building.

A Fortune 500 company from western Palm Beach County is close to signing a deal to lease 6,600 square feet of space in the tower. The unnamed company would be on the 8th floor, which also houses Neuburger Berman, an asset management firm, and RBC Wealth Management, said Kevin Probel, vice president of Jones Lang LaSalle. The firm handles leasing and management of the 18-story, 300,000-square-foot CityPlace Tower along Okeechobee Boulevard.

In April, Watermark Medical, which evaluates sleep patterns through at-home testings, moved to West Palm Beach’s EcoPlex “green” building at Centrepark West. The move followed a merger with SleepMed, the largest private sleep diagnostics and therapy provider.

The LA Fitness gym, which is coming to CityPlace, is proving to be an attraction to potential tenants eying space in the CityPlace Tower. “LA Fitness has been a big talking point for us,” Probel said. “It’s been a huge advantage.”

Probel said the gym frequently comes up during tower tours. The gym, which is taking over the Barnes & Noble bookstore by year’s end, is within walking distance of the office building.

If the deals are completed, occupancy in the tower will rise to 93 percent from 90 percent.

Meanwhile, another company also is relocating and expanding to West Palm Beach. This one is coming to the Reflections office buildings on Australian Avenue.

Granite Telecommunications LLC, based in Quincy, Mass., is moving and expanding a sales and support center from an existing location in Boynton Beach, said Peter Reed, principal with Commercial Florida Realty Services in Boca Raton. At Reflections, Granite Telecommunications will lease 7,800 square feet.

“This deal represents positive absorption for the Australian Avenue corridor,” Reed said. “It’s not just another West Palm Beach shuffle,” where tenants are lured from one building downtown to another. With this and other deals, “West Palm Beach is starting to wake up,” Reed added.

Reflections consists of two buildings, 400 and 450 Australian Avenue. Together, they total 130,000 square feet. The Granite deal brings the buildings’ occupancy to 77 percent, Reed said.

And then there are the secretive dealings for the city’s “tent site,” a property located on Okeechobee Boulevard at Dixie Highway. The land, once caught up in the Digital Domain fiasco, now remains available to potential employers. Up to three candidates are vying for the property but their identities are secret. Mayor Jeri Muoio has stressed that she wants to boost the number of companies based in West Palm Beach.

 

Source:  Palm Beach Post

Bo Paty Inks 14,000 EcoPlex Deal

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Florida Public Utilities Company (FPU), a subsidiary of Chesapeake Utilities Corporation (NYSE: CPK),   will relocate its West Palm Beach headquarters office to EcoPlex® at Centrepark West, 1641 Worthington Road, West Palm Beach, FL. FPU has leased 13,924 square feet for a term of five years.  Kris Hustad and Susan Thomas of Touchstone Webb Realty Company represented the tenant and Bo Paty of Navarro Lowrey Properties, Inc. represented the owner in the transaction.   EcoPlex is the first speculative office building in West Palm Beach, and only the second in South Florida, to achieve a LEED® Gold certification from the U.S. Green Building Council (USGBC). Located in the Centrepark Office District, the four-story, 100,000 square foot office building with adjacent garage is the first Class “A”, multi-tenanted “green” office building of its kind inPalm Beach County.

“As we considered options to move ourWest Palm Beachoffice, we were excited to discover the EcoPlex building” said Jeff Householder, FPU’s President. “The building is close to our current downtown facility, which was an important factor. FPU has been providing gas service inWest Palm Beachsince 1924. We have a strong commitment to this community and wanted to relocate in close proximity to downtown. In addition to location, EcoPlex offers us state-of-the-art building technology, with the hurricane-resistant features and emergency power systems that are critical to meeting our customer’s needs during a storm. The energy-saving design and high performance systems (LEED Gold certified) are also in keeping with our interest in promoting clean, efficient energy. As great added features, our employees will have access to a state-of-the-art fitness facility and covered parking.” said Householder.