Tag Archive for: pinnacle corporate park

Cypress Creek Office Park Reaches 94% Occupancy With New Lease Deals, Renewals And Expansions

/in , /by

Feldman Equities announced it has achieved a 94%+ occupancy following the signing of numerous new leases at Pinnacle Corporate Park, a Class A office campus at 500 and 550 West Cypress Creek Road in Ft. Lauderdale.

Pinnacle Corporate Park, located in the Cypress Creek submarket in North Ft. Lauerdale, is adjacent to the intersection of West Cypress Creek Road and is immediately adjacent to a Tri-Rail railroad station.

The roster of new and expanded tenants at Pinnacle Corporate Park includes:

  • Sound Income Group, LLC- 11,900 SF new lease
  • Maxim Healthcare Staffing Services, Inc.-8,314 SF new lease
  • Dimension Hospitality-7,757 SF new lease
  • La Cava Jacobson and Goodis, P.A.-5,919 SF new lease
  • Legacy Staffing-2,928 SF new lease
  • Clean Initiative FL, Inc.-2,287 SF new lease
  • Parsons Services Company-1,824 SF new lease
  • Harmon Inc.-1,502 SF new lease
  • Chen Moore and Associates, Inc.-12,405 SF lease renewal and expansion
  • Ascendo-6,292 SF lease renewal and expansion
  • Your LTC Resource, Inc.-1,592 SF lease renewal and expansion
  • Johnson & Martin, P.A.-1,465 SF lease renewal and expansion
  • Filomena’s Bean Café-1,410 SF new lease

“We’re thrilled to extend a warm welcome to our new tenants joining the dynamic community of Pinnacle Corporate Park,” said Larry Feldman, President and CEO of Feldman Equities. “We’re committed to providing a topnotch experience for our tenants, and the recent additions to our tenant roster are a testament to the capital improvements we’ve implemented. At Feldman Equities, we have worked very hard to enhance the overall environment and services we offer to our valued tenants.”

Pinnacle Corporate Park was 80% occupied when Feldman Equities acquired the property about two years ago. Following the acquisition, ownership has recently completed a multimillion-dollar renovation to the property. The renovations were designed by the world-renowned Gensler architectural firm. Improvements include:

  • Large high-end fitness center
  • First-class tenant lounge with soft seating and private meeting booths
  • Indoor and outdoor game area
  • New café with indoor and outdoor seating
  • Patio area with new pergolas for shade
  • New lighting throughout the common areas of the building

Pinnacle Corporate Park boasts near immediate access to Interstate 95 and is walking distance to hotels, restaurants, retail and banking and following the renovations, the buildings are now the best-amenitized office buildings in the Cypress Creek submarket. Pinnacle Corporate Park also offers EV charging stations and an on-site parking ratio of four spaces per 1,000 rentable square feet.

Despite the weaker office market nationally, the Sunshine State’s office market is benefitting from robust job growth, nation-leading population growth, a business-friendly regulatory climate and an influx of employers and workers from other parts of the United States.

 

Class A Office Portfolio In Fort Lauderdale Hits The Market

/in /by

Avison Young’s Florida Capital Markets Group has been exclusively tapped on behalf of a fund managed by DRA Advisors LLC to sell Pinnacle Corporate Park, a two-building, class A office portfolio at 500 and 550 W. Cypress Creek Road in Fort Lauderdale.

The asset totals 259,458 square feet on 14.31 acres in Broward County’s Cypress Creek submarket.

Avison Young Principals John K. Crotty, CCIM; David Duckworth; Michael T. Fay, who is also Managing Director of the firm’s Miami operations; Greg Martin, and George Vail will lead the sale. The transaction team also includes Avison Young Vice President Brian C. de la Fé and Associates Berkley Bloodworth and Emily Brais.

Over the past 24 months, the Avison Young leasing team led by Martin completed 17 lease transactions totaling 91,000 square feet

“Pinnacle Corporate Park is the most desirable property in the Cypress Creek submarket due to its strong occupancy, rental rate growth, and immediate potential for lease-up,” said Crotty. “In addition to the existing value, the offering provides the opportunity to maximize land on the site in the coming years through residential development.”

Pinnacle Corporate Park coming to market represents the trend of large funds and institutional owners’ confidence to sell large office assets again, as sales declined immediately following the pandemic. The deal would be similar to the recent $78.42 million Plantation Crossroads three-building portfolio sale.

“We are seeing an uptick in demand for investors looking to deploy capital in well-located South Florida office assets,” said Duckworth. “Pinnacle Corporate Park is ideally situated near major expressways, transit, and amenities, and provides the perfect opportunity.”

Pinnacle Corporate Park is positioned in the heart of Fort Lauderdale’s Uptown Urban Village, a master plan that supports the development of a thriving, transit-supportive, mixed-use neighborhood. Its offices are less than a mile from Interstate 95 and directly accessible from the Cypress Creek Tri-Rail station.

 

South Florida CRE Trends To Watch For In 2014

/in , /by

By Guest Blogger Ken Silberling

As 2013 fades into the rear view mirror, it’s a good time to break out our crystal ball to take a look into the future.  Are we presenting the most important trends in the market?  Maybe not, but  these are the key factors that will shape the way we search to identify opportunities in the Miami Dade,  Broward and Palm Beach County markets that we serve.

1. Multifamily Boom –  While there has been nearly no new office space developed in the market over the past few years, there are currently thousands of new rental apartment units under development.  Boca Raton and Downtown Fort Lauderdale are the most popular locations.  The big question is whether developers are betting on the changing tastes of the consumer regarding home ownership and the difficulty in obtaining home financing, or whether they are being seduced by returns of under 5% for investment grade multifamily which is driving values skyward. Whether the multi-family boom is the result of a great opportunity or whether it is the next bubble remains to be seen. Regardless, it is a key trend to watch.

2. Re-emergence of the Fort Lauderdale Uptown market – The Cypress Creek/Executive Airport market emerged in the mid-1980s as a suburban alternative to Downtown Fort Lauderdale. Its key attribute is its excellent access to the entire tri-county market via I-95. In the 1990s and 2000s, however, the completions of new highways in Southwest Broward combined with the relocation of thousands of Miami residents following Hurricane Andrew in 1992 created a huge wave of new residential and commercial development in Southwest Broward. Many companies left Cypress Creek in favor of the emerging Pembroke Pines, Sunrise and Weston markets, which replaced Cypress Creek as the primary alternative to Downtown.

While Cypress Creek has seen little new development and office vacancy rates have recently hovered in the mid twenties, we are seeing signs that the market is rebounding.   First, the recent $38.1 million sale of  Pinnacle Corporate Park to Banyan Street Capital and DRA Advisors shows that investors are beginning to take notice of an opportunity in the market.  You may have also noticed a huge new  Zimmerman Advertising sign off I-95. Omnicom, parent of Zimmerman has purchased the Cypress Centre building for Zimmerman’s new headquarters, nearly doubling the amount of space they had previously occupied on Commercial Boulevard. Finally, Texas-based Schlitterbahn is awaiting approval  to build a new $110 million water park on 64 acres that is currently the site of Fort Lauderdale baseball stadium between Commercial Boulevard and Cypress Creek Road just west of I-95. It will feature state of the art slides and a four star resort hotel. It promises to create jobs and promote tourism, all good for the local market.  As corporate residents and property owners in the uptown market, we are excited about this resurgence.

3. The B Word – While the market saw several large sales and large leases in 2013, a couple of deals caught our attention due to the use of the B word.  We normally see deals in the millions, tens of millions and occasionally hundreds of millions. In 2013, we saw two deals in the billions. Liberty Property Trust paid $1.475 billion for Cabot Industrial Value Fund III, a 23 million square foot industrial portfolio including 1.5 million square feet of South Florida assets.

In addition, Brookfield Property Partners acquired IDI (Industrial Developments International) for $1.1 billion. A large piece of the IDI portfolio is also in South Florida. Both Liberty and IDI have plans to develop new industrial space in our market.  Clearly the use of the B word in the South Florida industrial market shows that industrial real estate is big business and that South Florida warehouse space is highly desirable to both users and investors.

5. Office-Office – The merger between Office Depot and Office Max was completed in November. While we liked the name “Office Office” for the expanded company, it will in fact be Office Depot. The big news is that the new company has selected Boca Raton as its corporate headquarters and hundreds of Office Max employees will relocate from Naperville, Illinois to Office Depot’s 625,000 square foot Boca Raton facility. The loss of Office Depot would have been devastating to the Boca Raton market. Now, with more employees coming to town, these new residents will help the local economy, stimulating demand for  more homes, more supermarkets,  and more offices for accoutants, financial planners, doctors and attorneys. Office Max’s vendors will also need a local presence, all of which points to increased activity in the commercial market. At the same time, we have seen Tyco spin off ADT with both companies remaining in Boca. SBA, a developer of cell towers has also purchased the 160,000 former IBM Building on Congress Avenue and will be expanding its presence in Boca Raton.  These are all clear signs that corporations are seeing the value of a South Florida location which is good news for the local commercial real estate market.

A word of caution… any new development in South Florida has to take into account our fragile ecosystem and our potentially volatile climate. As long as developers can intelligently balance growth with protecting the environment, the outlook appears bright for the South Florida commercial real estate market in 2014 and beyond.

 

AY’s Martin & Moore Awarded Pinnacle Corporate Park Leasing Assignment

/in /by

Avison Young has been awarded the exclusive leasing assignment for Pinnacle Corporate Park, a 260,000 square foot two-building office campus located at 500 and 550 West Cypress Creek Road in Fort Lauderdale.

Currently 84 percent occupied, the Park is one of the most highly sought after office locations in the Cypress Creek submarket, and brings Avison Young’s total square footage of Florida leasing assignments retained over the past 12 months to more than 425,000 square feet.

Principal Greg Martin and Senior Associate Peyton Moore with Avison Young’s Fort Lauderdale office will oversee the leasing activities for Pinnacle Corporate Park on behalf of the new ownership investment group led by Miami-based Banyan Street Capital and New York-based DRA Advisors.

The acquisition, which took place in November, is the second notable office building sale to close in the area recently, representing an uptick in investor activity within the steadily recovering Cypress Creek submarket.

“The exclusive leasing assignment of Pinnacle Corporate Park is a direct result of our effective approach to marketing the unique attributes of properties to retain and attract tenants,” said Martin. “Working with ownership, we plan to maintain the current success of the Park by identifying potential tenants positioned for the long-term.”

“With Broward County’s increase in employment, declining vacancy rates, and office building construction at a stand-still due to the lack of available land, the search for quality office space is prevalent among growing companies,” added Martin. “Pinnacle Corporate Park’s premier location and value in the market will allow us to secure gold-standard tenants within the buildings.”

 

 

Cypress Creek Business Park Trades For $38M

/in , /by

The Pinnacle Corporate Park in Fort Lauderdale has changed hands for $38.1 million.

Milwaukee-based Northwestern Mutual Real Estate Investments sold the 500-550 Northwest 62nd Street business park last week for about $140 per square foot, according to Broward County records. The real estate arm of Northwestern Mutual Life Insurance originally developed the 270,000-square-foot complex 27 years ago. It paid $9.47 million for the 14.3-acre site in 1985.

A company managed by New York-based DRA Advisors is the buyer. The DRA-managed company obtained a $27 million loan from Wells Fargo Bank for the acquisition. DRA is a registered investment advisor that specializes in real estate investment and management services for institutional and private investors. The company has $11 billion in assets under management.

An active investor in South Florida real estate, DRA’s regional portfolio includes the Broward Financial Centre in Fort Lauderdale, the 1900-2000 Offices in Boca Raton and Plantation Marketplace in Plantation.

Pinnacle, located within Fort Lauderdale’s dense Cypress Creek office market, is DRA’s most significant South Florida acquisition in more than a year. In October 2012, the company paid $28.5 million for the Polo Club Shoppes in Boca Raton.

Cypress Creek has been a recent target for major office investors based outside of South Florida. In September, San Francisco-based Stockbridge Capital Group paid $33 million for Cypress Park West I and II at 6700 and 6750 North Andrews Avenue. Last Thursday, Stockbridge obtained a $25 million loan from JPMorgan Chase Bank for the acquisition of the two buildings totaling nearly 425,000 square feet.

The broader Cypress Creek office market faces occupancy challenges as 2013 winds down.

Cypress Creek vacancies totaled 25.5 percent at the end of the third quarter, according to Marcus & Millichap Real Estate Investment Services. Its vacancy rate is highest in Broward County by more than five percentage points. Nearly 200,000 square feet at the BankAtlantic Corporate Center was vacated during the first quarter of 2013 as part of BB&T’s acquisition of BankAtlantic.

 

Source:  The Real Deal