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Related To Pay $630 PSF For West Palm Beach’s Phillips Point Office Towers

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The Related Companies is expected to close on the Phillips Point office towers in West Palm Beach for $282 million.

AEW Capital Management is selling the 448,914-square-foot office complex. The deal, which will mark the largest office sale in South Florida in more than a year, is set to close in a couple of weeks. Real Estate Alert and Bloomberg reported the deal.

A source confirmed details of the sale to The Real Deal.

Related will pay about $630 per square foot for the buildings at 777 South Flagler Drive and 201 Lakeview Avenue. Records show AEW paid $246 million for the two towers in 2015. They sit on more than 4 acres overlooking Palm Beach island.

JLL brokers Hermen Rodriguez, Ike Ojala and Matt McCormack were marketing the building for sale as of last month.

Phillips Point is about 90 percent occupied. Morgan Stanley, Gunster, and Akerman are among the tenants.

The sale comes as more financial and tech firms announce they are opening offices in South Florida. Goldman Sachs, which has a small office at Phillips Point, is considering moving its asset management division to South Florida, and reportedly has looked at spaces in Palm Beach County.

Related redeveloped CityPlace into Rosemary Square, and plans to build another office tower across from Phillips Point called One Flagler.

 

Source:  The Real Deal

Colliers Appoints Respected Industry Vet To Lead South Florida Brokerage

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Colliers | U.S. announced that Julie Northcutt-Dunn has joined the firm as Executive Managing Director and Market Leader for the company’s business in South Florida, which includes offices in Miami, Fort Lauderdale, Boca Raton and West Palm Beach.

In her new role, Julie will directly oversee all Brokerage operations and service lines in South Florida with a focus on new business development, talent recruitment, talent retention and marketing. She will report to Ryan Kratz, President, Southeast Region | U.S. Brokerage. Kratz will remain in the South Florida market and a key member of the company’s U.S. Leadership Team. He is one of Colliers’ four Regional Presidents as he oversees 20 offices throughout the Southeast and parts of the Midwest.

“I couldn’t be more excited to join the enterprising team at Colliers during a time when our business in South Florida is thriving,” said Northcutt-Dunn. “In partnership with our deep bench of local talent and regional and national leadership, I am confident Colliers will continue to grow throughout the region.”

Northcutt-Dunn brings more than 15 years of industry experience to Colliers, most recently as Regional Sales Director of CBRE’s Midwest Division, where she filled two valuable roles: Sales Management Leader and interim Managing Director of Corporate Client Solutions. Prior to her work at CBRE, Julie held executive leadership roles in the financial services industry, including as Senior Vice President, Mortgage Executive at Fifth Third Bank.

Under Kratz’s leadership, Colliers has significantly strengthened its influence in the South Florida market. The firm acquired strategically positioned brokerage and property management firms such as Continental Real Estate Companies (CREC), with a focus on retail, and Michael Falk & Co., with a focus on office and industrial in Palm Beach county. During the same time, a number of notable professionals joined the Colliers team including Jonathan Carter, Dave Preston, Nikki Traff, Keith Edelman, Scott Goldstein, and Mark Rubin. In 2019, Kratz hired Greg Main-Baillie to lead Colliers’s fast-growing Development Services project and construction management operation.

“As the Market Leader for Colliers’ 75-broker South Florida operation for the last two years, I know that the business has grown to the size and service line complexity that requires full time market leadership by a top-tier professional,” Kratz said. “Julie’s unique, entrepreneurial spirit matches our Colliers values perfectly, and under her experienced leadership, I expect Colliers to continue to increase market share and attract top talent.”

 

Uptown Fort Lauderdale Office Building Sells

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Marcus & Millichap negotiated the sale of Cypress Executive Center, a office building located in the Uptown Business District of Fort Lauderdale.

The asset sold for $17,500,000.

ICM Cypress LP, an affiliate of Calgary-based ICM Realty Group, sold the 140,635-square-foot office building at 1901 W Cypress Creek Road to CYPRESS CORPORATE CENTER LLC. The price equates to $124 per square foot.  The property is situated on a ground lease that is owned by the City of Fort Lauderdale and has just under 50 years of lease term remaining.

Marcus & Millichap’s Douglas Mandel, Tyler S. Kuhlman and Richard Redmond had the exclusive listing to market the property on behalf of the seller.

“We have sold several properties over the years that were subject to city of Fort Lauderdale ground leases, so we are very familiar with working with Airport Authority and the city of Fort Lauderdale to navigate the assumption process”, said Mandel. 

ICM purchased the building in 2015 for $10.9 million when Mandel represented the Seller.  At the time, building was just 60% occupied.  After the acquisition ICM completed a building-wide renovation, re-branding and repositioning strategy, which resulted in the building’s stabilization.  “Our partnership with Doug’s team for the building sale was vital to executing our investment strategy”, said ICM Realty’s Andrew Webb.

“The Cypress Executive Center garnered premium pricing due to current ownerships ability to stabilize the asset, whilst significantly upgrading the buildings core amenities and successfully executing on their value-add strategy from inception,” stated Kuhlman.

Cypress Executive Center is located at 1901 W Cypress Creek Rd in Fort Lauderdale, FL.  It is directly across the street from the Fort Lauderdale Executive Airport in the Uptown Business District of Fort Lauderdale, which is home to numerous major national corporations such as Citrix, Microsoft and others.  The property was constructed in 1987 and extensively upgraded between 2015 and 2019, with over $1.3 million worth of improvements added to the building, in addition to considerable Tenant Improvements made to many of the suites during the same period.

 

Former CBRE First VP To Lead SVN Commercial Realty’s Office, Healthcare Agency Practice

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Peter Messina, CCIM has been appointed by SVN Commercial Realty President Keith Kidwell to lead the firm’s Office and Healthcare agency practice in South Florida.

In 2020, the South Florida office market, while affected by the pandemic, mostly held strong and was not impacted nearly as much as other major markets around the country.

“Rental rates have for the most part remained intact, although incentives have increased especially to the major tenants seeking renewal,” Messina said. “Sublease space creating a shadow market has begun to surface and should be monitored closely.”

 “I am excited to be joining SVN Commercial Realty and look forward to leveraging the Sperry platform of services and to be aligned with a team of seasoned professionals,” Messina continued. “SVN has a company culture of broker cooperation which fits perfectly with my involvement in CCIM and my business approach and the service to my clients.”

Messina has 14 years of experience in South Florida commercial real estate covering most types of transactions and representation. His experience in office and industrial agency and tenant representation, healthcare, multimarket portfolio accounts and advisory services lends itself as a perfect fit to the Sperry platform of services.

Messina joins SVN Commercial Realty after four years with CBRE, where he served as First Vice President with the Advisory and Transactions Services team. He is an active member of CCIM and served as the Broward District in 2018 and continues to service on the board. He is also a long standing member of the Rotary Club of Weston and volunteers for several local charities.

 

Stiles’ Norm Adams Signs Lease With Accounting Firm At The Main Las Olas Office Tower In Downtown Fort Lauderdale

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Stiles Senior Vice President Norm Adams secured a 10-year lease deal with Templeton & Company accounting and consulting firm at The Main Las Olas located at 201 E. Las Olas Blvd. in the heart of downtown Fort Lauderdale.

Delivered in November 2020, The Main Las Olas is the newest Class A, amenity-rich office tower developed on Las Olas Blvd. in more than two decades.

Templeton & Company, one of the region’s leading accounting and consulting firms with offices in West Palm Beach and Fort Lauderdale, is relocating from 301 E. Las Olas to The Main Las Olas. Templeton provides a broad spectrum of services to its clients including assurance, tax, family office and consulting. The firm plans to occupy the space in January 2022.

“We reached an exciting point in our company’s evolution and our professionals need office space that reflects the high caliber service that we offer our clients and supports our business growth objectives,” said Steve Templeton, Founder and President of Templeton & Company. “The Main Las Olas unquestionably provides the preeminent venue to best meet our clients’ needs and serve as our Fort Lauderdale headquarters for family office services to our high-net-worth families.”

Spanning a full city block, The Main Las Olas redefines the city’s epicenter with 1.4 million square feet of mixed-use office, residential and retail space that stands alone across South Florida as nothing short of revolutionary.

“In this new environment, tenants want a combination of amenities and location, and The Main Las Olas delivers the highest standards of both,” said Adams. ”Templeton chose to establish a new base where they could elevate their business profile and grow in a safe, secure facility offering the highest level of technology and features in office today.”

Combining a dramatic and stunning 25-story all-glass design by nationally acclaimed architecture firm Cooper Cary, the tower offers nearly 370,000 square feet of efficient, modern and forward-thinking office space, expansive 12-foot, floor-to-ceiling windows that draw maximum light, and world-class amenities. Connected to 341-unit apartment tower Novo Las Olas, which features the area’s first Publix GreenWise grocer on the ground floor, the building’s outdoor and indoor amenity spaces, conference centers and state of the art fitness center rival even the most cutting edge office buildings found across the region.

The Main Las Olas, developed by joint venture partners Stiles and San Francisco-based Shorenstein Properties LLC, welcomed its first tenant, law firm Akerman LLP, in November and is currently 40 percent leased. Stiles is a 69-year-old, full service commercial real estate firm headquartered in Fort Lauderdale with offices across the Southeastern United States.

 

Why Now Might Be The Best Time To Sell Your South Florida Office

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By Mark Rubin

 

Conventional wisdom says “don’t sell an office building during a pandemic, unless you’re desperate”, but I’d like to offer a contrarian view to owners who are strategically evaluating how best to capitalize on current investment market conditions.

Do you own an office building that is located in a desirable South Florida submarket?

Is your building well-leased to strong, rent paying tenants, with limited near-term lease expirations?

Does the tenant mix include medical, life science or other essential or mission critical users?

 

If you answered yes to any of the above questions, you may need to consider selling, and here’s why:

Pent-Up Investor Demand.  While the stock market continues to whipsaw to record highs, billions of dollars have been raised by institutional and private real estate investment vehicles in 2020 as an investment alternative.  This abundance of capital needs to be deployed in order for sponsors to achieve their investment objectives. And large multi-asset class owners will soon be over allocated to the equity markets (because of the run up), necessitating a rotation into other investments, including real estate.

Limited Acquisition Opportunities.  Since many owners are sitting on the sidelines waiting for post pandemic price discovery, despite strong buyer interest, there are very few acquisition opportunities for investors to buy.

Favorable Market Conditions, Demographics.  There has certainly been a significant recent increase in space availabilities – both direct and sublease.  Space users have been reluctant to make medium or long term commitments and there will definitely be changes in the way occupiers utilize office space in the future.  In the short term, vacancy rates will increase, absorption will be negative and rent growth will be flat or decline.  Having said that, the SALT effect (lack of state and local taxes), an educated workforce, business friendly state policies, and a high quality of lifestyle will continue to fuel corporate relocations and growth in South Florida.

This Too Shall Pass…Soon.  With at least three effective vaccines about to be deployed, political uncertainty resolved and the federal government standing by to buoy the economy as necessary, a new normal will quickly return.  Pent-up demand for South Florida office space should fast track absorption of excess space and with limited new supply, rental rate rents will start to spike as early as 2022.

Premium Pricing Attainable.  ”Smart money” market making owners with favored assets are taking advantage of the supply/demand imbalance, historically low interest rates, enhanced by favorable long-term market characteristics, to create competitive bidding for these coveted South Florida assets and are achieving premium pricing.

 

Mark M. Rubin is executive managing director of Investment Sales for Colliers International based in South Florida.

 

Source:  GlobeSt.