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Butters Picks Up Boca Office Complex For $21 Million

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Butters just paid $21 million for a three-building office complex in Boca Raton, marking the real estate firm’s third acquisition in the Palm Beach County office market in the past year.

A Butters affiliate, BREF 1900 LLC, bought the 120,000-square-foot office complex at 1900-2000 Northwest Corporate Boulevard, off Glades Road and I-95, the company said. The price equates to $175 per square foot.

Records show the seller is New York-based DRA Advisors, which had paid $19 million for the property in 2008.

CBRE brokered the deal.

“There was no asking price,” said Adam Vaisman, director of acquisitions for Coconut Creek-based Butter. “Bids came in and we ended up being selected.”

Vaisman said the three buildings are currently 78 percent occupied, with tenants including Garda World; Rogers & Cowan; Milber Makris, Plousadis & Seiden; Katz & Associates and Pinkerton. The buildings have covered parking.

He said Butters plans to invest $3 million in the complex, with a goal of bringing it up from Class C to Class B, and allowing the company to raise rents by a few dollars to the low $20s per square foot. Vaisman declined to provide the buildings’ exact current lease terms. Planned capital improvements include modernizing the exterior, entrance and corridors with new carpeting, tile, paint and fixtures, as well as enhancing the landscaping.

“In the Class A market, the asking rents are upper $20s, $30s net, and we feel there is a gap between that class’s rents and the Class B rents, and we can take advantage of that,” Vaisman said. “We can raise the rents by investing some money in the buildings.”

During the past 10 months, Butters also purchased 851 Broken Sound for $6.125 million in May and 3010 Military Trail for $4.6 million in October, bringing its total office acquisition in Boca Raton to 210,000 square feet and $31.7 million.

“We just like office product in this market,” he said. “No one is building it and you can buy it below replacement cost.”

Overall in Palm Beach County, demand for office space is high, according to an Avison Young report released early this year. New construction is expected in West Palm Beach this year, such as the Gardens Innovation Center, which incorporates green building features.

 

Source:  The Real Deal

One Financial Plaza Fetches $87 Million

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Crocker Partners sold a 28-story office tower in downtown Fort Lauderdale to an affiliate of Walton Street Capital for $86.75 million.

Records show Crocker affiliate One Financial Plaza LLC sold the building at 100 Southeast Third Avenue to W-Crocker Fin Place Owner VIII LLC, which is controlled by Doug Welker, principal of asset management at Walton Street Capital, a private equity firm based in Chicago. The buyer financed the deal with a $61.23 million loan from SunTrust.

The deal marks the first large sale of an office building in Fort Lauderdale this year. It breaks down to about $314 per square foot.

The 276,572-square-foot Class A office building was built in 1972, and was originally known as the Landmark Bank Tower. When it opened, it was the tallest building in Fort Lauderdale, and is now the sixth-tallest, according to Emporis. One Financial Plaza was renovated in 2011, data from Real Capital Analytics shows. Crocker Partners paid $44 million for the 4-acre property in 2011.

Tenants include the Tower Club restaurant on the penthouse level, anchor tenant Regions Bank, Pipeline Workspaces, AXA Advisors and Fowler White Burnett. Pipeline signed a 20-year lease for a full floor at the building and opened in October. One Financial Plaza includes an attached parking garage, a renovated lobby, new gym and conference space and a redesigned entrance, according to a Loopnet listing.

The office tower is about two blocks away from Las Olas Boulevard, which is going through a commercial and residential resurgence. In September, a JP Morgan investment manager sold the Las Olas City Centre office tower to Deutsche Bank for $220 million, marking one of the biggest office deals in South Florida in 2016.

And the sale of One Financial Plaza is the second big office building that Crocker has traded in recent months. The Boca Raton-based investment and management firm, along with Cornerstone Real Estate Advisers, sold the Esperanté Corporate Center in West Palm Beach to RedSky Capital for $126 million in July.

One Financial Plaza’s new owner, Walton Street Capital, has handled more than $8.4 billion of investments from public and corporate pension plans, foreign institutions, insurance companies and banks, endowments and foundations, trusts, and high net-worth individuals, according to its website. Affiliates of Walton Street Capital have invested more than $7.5 billion of equity into the private equity real estate investment firm.

 

Source:  The Real Deal

Berger Commercial Realty Joins CORFAC International

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Berger Commercial Realty/CORFAC International, a regional, full service commercial real estate firm based in South Florida, recently announced its membership in CORFAC International, a global network of independently-owned entrepreneurial commercial real estate brokerage firms that partner to deliver quality and experienced service locally, nationally and internationally.

“Our extensive knowledge and experience in the South Florida market has allowed us to serve our clients well,” said Berger Commercial Realty/CORFAC International President Lloyd Berger. “With CORFAC, we have the opportunity to broaden our horizons and further expand our client base.”

Established in 1989, CORFAC currently has affiliates in 48 U.S. markets, four Canadian markets and 26 international markets including Colombia, France, Germany, Ireland, Israel, Italy, Mexico, Poland, Romania, Russia, South Africa, South Korea, Switzerland and the United Kingdom.

“Membership in CORFAC International is by invitation only, so when we look for an affiliate for a particular market, we select firms that are recognized in the area for their expertise and best practices,” said CORFAC International Executive Director Jonathan Salk. “Berger Commercial Realty was an ideal candidate due to its client-centric approach and customized real estate solutions, which have resulted in lasting client-broker relationships and repeat business. This methodology sets a precedent from which other CORFAC members can learn.”

Alongside joining CORFAC International, Berger Commercial Realty/CORFAC International is celebrating its 20th anniversary, having served a diverse array of clients throughout South Florida since 1998.

 

 

550 Building To Be FLL’s SOLO District’s Newest Office Building

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Fort Lauderdale’s SOLO District (South of Las Olas) is undergoing a transformation to keep up with the fast growing pace of new residents and businesses. Demolition of Fort Lauderdale’s Justice Building will begin February 2017 to make way for the new 550 Building.

The 30,734 square feet Justice Building was built in 1982 and has been home to some of Broward County’s top law firms for the past 35 years. The building sits on the NE corner of Andrews Ave and SE 6th St., adjacent to the new Broward County Courthouse, in the highest pedestrian traffic areas in Broward County.

the 550 buildingThe 550 Building will be the Fort Lauderdale’s SOLO District’s newest office building since 1989. The new 86,367 square feet, 7-story, Class A building will feature 6 floors of office space and 7,500 square feet of ground floor restaurant and retail space. The property will also feature a new 663-space attached parking garage with “The SOLO Shoppes“ on the ground floor, which will be comprised of an additional 14,000 square feet of restaurant/retail opportunity.

Pre-leasing has already begun for all components and occupancy is scheduled for the Spring of 2018.

 

Reduction In Business Rent Tax Part Of Gov. Scott’s 2017 Tax Cut Plan

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Florida Gov. Rick Scott told Realtors® in Orlando that he again included an issue close to members’ hearts – a reduction in the state’s business rent tax – as part of his proposed 2017 budget that he’ll send to the Florida Legislature for consideration.

Scott announced his tax cuts statewide in a two-day tour, with one of the five stops at Florida Realtors® Mid-Winter Meetings going on last week in Orlando. Scott made the announcement during the Florida Real Estate Trends 2017 conference.

“We’re honored that Gov. Rick Scott made time to update Florida’s Realtors on his proposed budget,” says 2017 Florida Realtors President Maria Wells, broker-owner with Lifestyle Realty Group in Stuart. “Realtors across the state stand ready to work with the governor to advocate for a cut in Florida’s onerous business rent tax.

“Florida is the only state that has a tax on commercial leases. It’s unfair to our small businesses, and it makes it more difficult to attract new business and industry to the Sunshine State. It also causes an additional burden if an existing Florida business hopes to invest more or expand, which in turn creates new opportunities for families in their communities.”

Gov. Scott called his trip around the state his “Fighting for Florida’s Future” Tax Cut Tour. Overall, he proposed $618 million in tax cuts to help Florida families and small businesses. Of those tax cuts, he earmarked $454 million – 73 percent – to reduce the business rent tax.

If enacted, the proposal would reduce a business’ rent tax by 25 percent in 2018.

“We are fighting to secure a bright future for Florida, and cutting taxes will help make our state the top location for job creators to invest in for generations to come,” Scott said. “I made a promise to keep fighting for jobs until my very last day as governor, and I ask the (Florida) Legislature to join me in fighting for the future of our students, our small businesses, our veterans and our families by cutting $618 million in taxes this year.”

Scott will send his final budget proposal to the Florida Legislature, which will consider his recommendations during the session that convenes on March 7, 2017.

In addition to the business lease tax deduction, Scott proposed the following tax cuts:

  • Four sales tax holidays that would save Floridians an estimated $98 million this year: $72 million during a 10-day back-to-school sales tax holiday; $7 million from a nine-day disaster preparedness sales tax holiday; $18.4 million from a three-day veteran’s sales tax holiday; and $500,000 from a one-day camping and fishing sales tax holiday.
  • A sales tax holiday on textbooks for the 2017-2018 academic year that would provide students an estimated $48 million savings.
  • An increase in the corporate tax exemption from $50,000 to $75,000. If enacted, Scott estimates that 22.5 percent of businesses that currently pay state income taxes won’t have to do so. The exemption was increased from $5,000 to $25,000 in 2011 and $50,000 in 2012.

 

Source:  Florida Realtors

Remembering Industry Veteran Robert H. McCullough

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It is with deepest sympathy that we learned of the passing of our good friend and colleague Robert H. McCullough on Monday, January 23rd after a prolonged illness.

Robert had more than 24 years of experience in the South Florida commercial real estate industry, with an extensive background specializing in professional office as well as industrial product, with proven expertise in medical product as well. His primary focus was landlord/seller agency representation, but had enjoyed success with select buyer and tenant representation clients.

Robert had completed well over two million square feet of new and existing commercial lease and sale transactions, valued at over a quarter billion dollars.

He served as Managing Director with Newmark Grubb Knight Frank (NGKF) since 2008.

Prior to joining NGKF, Robert represented landlords and tenants at Property Trust Realty, Inc., which was purchased by Codina Realty Services. Flagler Real Estate Services later purchased Codina Realty and, during his tenure there, he was awarded Broker of the Year 2000, 2001, 2002, 2005, 2006 and 2007.

The family requested that donations be made in Robert’s name to:

Berean Christian School
8350 Okeechobee Blvd., West Palm Beach, FL 33411

or

Church in the Palms
3812 Jog Road, Greenacres, FL 33467

Please keep Robert and his family in your prayers as we mourn the loss of this special man.