DAILY BUSINESS REVIEW
South Florida Office Building Sells for $51 Million
Boca Raton’s office market remains hot as a 179,837 square-foot, four-story Class A office building sold for $51M.
The building, located at 1515 South Federal Highway, sits on a 3.66-acre parcel near the downtown core.
The influx of finance and tech firms has helped bring the vacancy rate down to a 10-year low of 9.8% and a high rental rate of $41.54 per square foot. This has attracted investors with the office sales volume in 2021 reaching $922 million. So far this year, Boca Raton has seen $345 million in office investment sales with the price per square foot at $248. Right now, there are more cross-border investors, which is a trend that’s expected to continue.
Executive managing director Mark Rubin, director Bastian Laggerbauer, and financial analyst Jake Stauber of the Colliers South Florida Investment Services Team represented the seller, Boca Raton-based developer Penn-Florida Companies.
The buyer was represented by Maria Gomez, president of Powerful Real Estate LLC., who represented the buyer Renaissance Properties, a New York-based commercial real estate firm.
“The interest from buyers seeking high-quality office investment properties in South Florida remains strong and steady,” said Rubin in a press release. “This transaction is a testament to the strength and fundamentals of the Boca Raton office market.”
South City Plaza offers large signage opportunities that are visible along Federal Highway and is also near Dixie Highway. The office tower is also near a $1.2 billion-dollar mixed-use project by Penn-Florida Companies, which features a Mandarin Oriental Hotel, luxury apartments, private condo homes, retail space and a golf course.
The asset is a good investment in a high-growth asset, the team believes, as recent developments as well as the construction of a Brightlight stop will encourage retention and girth in the area.
“Even amidst an evolving and challenging debt market, our team relished the opportunity to work alongside sophisticated counterparts on both sides that have successfully acquired and repositioned assets in high-demographic markets across the U.S.,” said Laggerbauer in a press release.
Renaissance Properties, a family-run organization aims to plans to reposition and put more capital into the property to solidify its positioning as a trophy Class A asset within the East Boca Raton submarket.