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CBRE Arranges Sale Of Ft. Lauderdale Office Building

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CBRE has facilitated the sale of a 42,442-square-foot office building at 5100 N. Federal Hwy. in Fort Lauderdale to Hall Consolidated Group LLC for $7 million.

Benjamin Silver with CBRE represented the seller, 5100 Realty LLC, in the transaction.

Originally built in 1972, the four-story building received several major capital improvements in 2021, including a new roof, exterior waterproofing, lobby upgrades and several air conditioning units have been replaced.

The property is located just north of the area’s largest medical provider, Holy Cross Hospital, a 557-bed facility. It provides nearby access to Interstates 95, 441 and Florida Turnpike from East Commercial Boulevard.

“We were able to procure an owner-user and secure a premium price for the seller due to the large contiguous availability of square footage and the property’s excellent visibility with branding ability and signage. While the medical user plans to occupy most of the space, the proximity to Holy Cross Health’s Fort Lauderdale campus should provide significant tenancy demand,” said Silver, a senior vice president with CBRE.

 

Office, Retail Complex In Boca Raton Sells For $12.65 Million

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A California buyer, Brickstar Capital, has closed on the acquisition of Spanish River Plaza, located at 500 NE Spanish River Boulevard in Boca Raton.

Executive Managing Director Mark M. Rubin and Director Bastian Laggerbauer of Colliers | South Florida Investment Services Team represented the seller, Chart Organization, a real estate investment and management company based in Lynbrook, NY, in the transaction totaling $12.65 million.

“The South Florida investment market continues to achieve record pricing as opportunities to acquire solid performing properties in highly desirable locations become more limited,” said Rubin. “Investor demand remains strong and is fueled by the rising rental rates and continued low financing which captivates interest from investor groups from all over the country.”

The 56,034-square-foot office and retail complex is situated on nearly 4.5 acres directly at the intersection of South Federal Highway and Northeast Spanish River Boulevard and one block away from North Dixie Highway. The complex benefits from the newly enhanced Spanish River interchange and the potential for additional development in the future.

“The buyer has experience acquiring similar mixed-use assets and has a creative repositioning strategy planned for the complex that will appeal to the affluent demographics in Boca Raton,” said Laggerbauer.

South Florida’s growing population and accelerated pandemic recovery continue to push rental rates and capture the attention of investors. Mixed-use investors are particularly attracted to Boca Raton’s affluent population, having an average household income of nearly $124,000. This has led to record sale pricing and volume in Boca Raton, with office sale volume reaching $926.5 million for the year 2021. The average sales price for office space is currently $300 per square foot and over $330 per square foot for retail space. Additionally, the average rental rate for office space in Boca Raton has increased 6.6 percent year-over-year while the average rental rate for retail space has increased 10.2 percent year-over-year.

 

A Tale Of Two Office Markets: Broward Vacancies Rose While Palm Beach County’s Decline

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New office leasing activity is on an upward trajectory in Broward and Palm Beach, but vacancy rates remain in the high double-digits in both counties, according to a recently released report.

Palm Beach County fared better than Broward in filling up vacant spaces in the fourth quarter of 2021, as well as boosting landlords’ confidence to raise rents. Palm Beach County also outperformed Miami-Dade County, where the overall vacancy rate hit 16 percent in the final quarter of 2021.

Broward landlords, on the other hand, were forced to provide more tenant concessions and space improvements, as new projects that came online affected vacancy rates, according to the report by Cushman & Wakefield.

Broward County

The vacancy rate in Broward jumped to 16.9 percent in 2021’s fourth quarter, compared to 14.7 percent during the same period of the previous year. The increase was due to new Class A office space coming online, including at The Main Las Olas mixed-use project (pictured above) in downtown Fort Lauderdale, according to the report. The project’s 387,402-square-foot office tower is more than 50 percent leased.

Still, new leases totaling 2.4 million square feet helped soften the vacancy blow in Broward during the last quarter of 2021, according to the report. Online pet retailer Chewy signed the tri-county region’s biggest lease of last year, inking a deal for 221,597-square-feet for the company’s new headquarters in a new two-building office project in Plantation developed by Midtown Capital Partners.

Most new tenants flocked to Broward’s suburban office submarkets in the fourth quarter, with only 20 percent of new leases in the Fort Lauderdale commercial business district, Cushman & Wakefield found. However, the number of new leases was not enough to offset tenants vacating spaces during the last 18 months, the report shows.

As a result, the overall average asking rent dipped to $35.30 in the most recent quarter, from $35.94 a square foot in 2020’s fourth quarter, according to the report.

“Landlords in both Class A and Class B assets were more aggressive with pricing, while offering more concessions, as well as higher tenant improvement amounts to make tenants sign deals,” the report states.

Palm Beach County

Palm Beach County’s office market outperformed Miami-Dade and Broward when it came to raising occupancy. The county’s overall vacancy rate ended the latest quarter at 13.2 percent, compared to 14.5 percent during the same period of 2020, according to the report.

New leasing activity jumped 77 percent, year over year, with tenants moving into more than 2.2 million square feet of new office space, the report shows. The Palm Beach market had a total positive absorption of 528,000 square feet in 2021, the highest since 2016.

As a result, landlords raised the average asking rent by 3.8 percent to $39.86 a square foot in the most recent quarter. In 2020’s fourth quarter, Palm Beach office tenants were paying an average rent of $38.40 a square foot. In the county’s commercial business district, which includes downtown West Palm Beach, Class A rents hit $65.42 a square foot, a 6.7 percent bump compared to the fourth quarter of 2020.

Palm Beach County’s office market performance likely fueled bullish investor activity, as a number of significant office deals closed last year, including a slate of acquisitions in West Palm Beach by developer Stephen Ross. On one of the sites, acquired for $20.1 million in July, Ross’ Related Companies is building the 25-story One Flagler, where two financial firms and a Greek restaurant have signed leases.

 

Source:  The Real Deal

Palm Beach Office Campus Trades For $81 Million

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CBRE has facilitated the $81.15 million sale of the fee simple interest in Fairway Office Center in Palm Beach Gardens on behalf of NAI MHC and a JV Institutional Investment Manager.

Fairway Office Center is comprised of three Class-A office buildings totaling 222,682 square feet.

The sellers were exclusively represented by Christian Lee, José Lobón and Marcos Minaya with CBRE Capital Markets, with the assistance of CBRE’s Tom Rappa. The leasing broker for the property, Jason Sundook with NAI Merin Hunter Codman, also assisted in the marketing.

Currently 78 percent leased, Fairway Office Center is located on a 16-acre campus at 7108, 7111 and 7121 Fairway Drive. The property is being acquired by a joint venture of Parmenter Realty Partners and an affiliate of Prime Finance, representing their second recent office acquisition in South Florida.

“The seller did a fantastic job of institutionally maintaining the property reflected in increased rental rates as well as continued and historically high levels of occupancy. The $1.3 million in recent improvements to the buildings creates an exceptional opportunity to attract tenants. The new ownership plans to capitalize on the property’s highly desirable location and to continue to upgrade and amenitize the project,” said Minaya, a vice president with CBRE. 

“Fairway Office Center is the only Class A office building in the North Palm Beach submarket that is adjacent to the Florida Turnpike. This strategic location, excellent connectivity and proximate amenities make Fairway Office Center an ideal office location for executives and employees alike,” added Lee, a vice chairman with CBRE.

“These high-quality buildings benefit from excellent transit access, nearby amenities, and the strong Palm Beach County leasing market. The migration of hedge funds and other financial services firms moving into the market drove nearly 250,000 square feet of new-to-market tenants in 2021. Our planned improvements will provide the finishes and amenities these new to market tenants are looking for,” said John Davidson, President and CEO of Parmenter Realty Partners.  

The property’s location on PGA Boulevard is proximate to in-demand retail for the micro-market inclusive of Mirasol Walk, PGA Commons and Downtown PGA, placing it within a short drive to more than 50 restaurants and bars, 250 hotel rooms, 50 retail shops and two fitness centers.

 

Stigliano Closes Sale Of Boca Raton Office Buildings

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Reese Stigliano, president of Stigliano Commercial Real Estate, announced the sale of 6501 & 6531 Park of Commerce Blvd. in Boca Raton.

The property consists of 2 multi-tenant office buildings totaling 52,000 square feet. The buildings are situated on 4.35 acres in the prestigious Park at Broken Sound, formerly known as Arvida Park of Commerce, located just north of Yamato Road west of I-95 in Boca Raton.

6501 park of commerce blvd

The sale closed on December 21 for $8.9 million, which equates to $170 per square foot. Stigliano represented the Buyer, Castle Boca, LLC, in the transaction. CBRE’s Jeff Kelly, Sean Kelly and Dave Wigoda represented the Seller, MTI PROPERTIES FLORIDA LLC.

According to Stigliano, “The transaction took over 6 months to close which is significantly longer than usual in today’s market.”

The Buyer assumed a $5.1 million existing Commercial Mortgage-Backed Securities (CMBS) Loan.

“CMBS loans are desirable due to lower interest rates but they are very expensive to prepay and the procedure to assume is arduous. Fortunately, the Seller and Buyer had the patience to work though the loan assumption process,”  he added. 

Stigliano Commercial Real Estate has also been appointed the exclusive leasing agent for the property, which has approximately 13,000 square feet of vacant space.

Reese Stigliano is a recognized leader in the South Florida commercial real estate market, with over 40 years of experience. As President, he focuses on land sales, investment sales and office leasing for the firm. Stigliano’s talent in bringing complicated commercial transactions to a close has been evident throughout his successful brokerage career.

 

West Palm Beach Office Properties Sell For $19.5M

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A Maryland-based company acquired a portfolio of seven neighboring office buildings in West Palm Beach for $19.5 million.

West Palm Beach-based 340-500 Columbia Drive LLC sold the 109,237 square feet of office space at 340, 360, 380, 400, 420, 440 and 500 Columbia Drive. The buyers were Columbia Tract One through Three LLC, all managed by Angler Properties of Towson, Maryland.

Darryn Dunn and Tom Gibson of Palm Beach Gardens-based Asset Specialists brokered the deal. They are also the leasing managers of the property for the new owner. The price worked out to $179 a square foot.

 

Source:  SFBJ