1700 Palm Beach Lakes, West Palm Beach, FL
WEST PLAM BEACH, FL – A Miami-based subsidiary of Breakers Capital has sold the 1700 Palm Beach Lakes office building to Capstone of Hackensack, New Jersey, for $ 19.35 million.
Sales of the 11-story 113,964 square foot office building were approximately $ 170 per square foot. The Cushman & Wakefield Capital Markets team of Scott O & # 39; Donnell, Dominic Montazemi, Greg Miller, Miguel Alcivar and Michael Ciadella, with the assistance of Cushman & Wakefield's leasing specialist Anthony Librizzi, negotiated the sale on behalf of 1700 PBL LLC, a Subsidiary of Breakers Capital.
Jason Hochman, of Cushman & Wakefield's Equity, Debt & Structured Finance group, assisted Capstone in securing a $ 18.4 million acquisition loan from Blue Vista Finance in connection with the 1988 acquisition of 1.24 acre Land of Palm Beach Lakes Boulevard office building built around 1700.
At the time of sale, the property was 89.4% occupied. Notable renters include the Internal Revenue Service, Valley National Bank, Uniters North America, and Comcast Spotlight.
The IRS will vacate more than 32,000 square feet in the third quarter of this year, which will bring the building's occupancy down to 61.1% and create what Cushman & Wakefield calls a tremendous value creation opportunity for Capstone.
"The departure of IRS actually offers an exceptional value creation opportunity to update a significant portion of the older space in the building and better adapt it to the needs of modern, smaller tenants who predominate in this sub-market," says O of C & W. Donnell. "The building is a prime asset, offering Capstone upside potential given the ideal combination of positive market fundamentals, rapid development in the area and the potential for a full property rebranding in one of South Florida's most exciting cities."
Breakers Capital recently completed a capital investment program valued at approximately US $ 2 million that includes a complete upgrade of the elevators, complete restoration of the lobby and garage, and a complete replacement of the generator.
Cushman adds that the office building is positioned to benefit from the recent corridor redesign marked by the development of the Palm Beach Outlets and the Hilton Garden Inn West Palm Beach in the outlets, which serves as the Houston Astros spring training home .