DAILY BUSINESS REVIEW

Boca Raton’s office market remains hot as a 179,837 square-foot, four-story Class A office building sold for $51M.

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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.

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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.

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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.

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“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.”

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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.

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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.

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“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.

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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.