This Week’s South Florida Deal Sheet: West Palm Apartments Trade For $29M
An entity tied to Toronto-based development firm Great Gulf paid $28.5M for the Poinsettia Club Apartments at 5400 N. Flagler Drive in West Palm Beach.
The seller was an entity tied to Palm Beach-based Frisbie Group, which paid $24M for the 72-unit complex in December 2021. Prior to that sale, the property last traded in 2005 for $7M.
The three-building Poinsettia Club Apartments complex was built on 2.5 acres in 1966. The sale was confirmed by property intelligence platform Vizzda.
The aging buildings’ waterfront location in West Palm Beach makes it a likely candidate for redevelopment. Great Gulf, which made the acquisition through an entity called 5400 N Flagler Limited Partnership, didn’t respond to a request for comment about its plan for the site.
SALES
Kayne Anderson and Remedy Medical acquired two medical office buildings at 10275 and 10383 Hagen Ranch Road in Boynton Beach for $20.5M, Vizzda confirmed. The two companies also assumed a 99-year ground lease associated with the properties held by Welltower, an Ohio-based REIT.
The seller was Miami-based Flagler Healthcare Investments, and the sale was part of an $86M portfolio deal that covered 181K SF of properties in Phoenix, Chicago and Boynton Beach, according to a release from JLL. Flagler paid $15.7M for the Florida properties in 2019, according to property records.
The entire portfolio is 99% leased, according to JLL, with tenants at the Boynton Beach properties including the Orthopedic Center of Palm Beach County and Children’s Pediatric Specialists at Boynton Beach.
JLL’s medical properties group advisory team, led by Mindy Berman, Matt DiCesare and Liam Sorensen, represented Flagler in the transaction.
***
Fort Lauderdale-based Affiliated Development paid $12M for a 4.3-acre assemblage at 2703 and 2755 S. Federal Highway in Boynton Beach, Vizzda confirmed. The seller was a trio of entities held by Alan Rutner in Boca Raton, who provided $6M in seller financing, The Real Deal reported.
Rutner paid $3.2M for the properties in 2016. The assemblage includes a vacant lot along with a two-story office and retail building that will be demolished to make way for a residential project, Affiliated President Nicholas Rojo told TRD.
Affiliated has an agreement with the City of Boynton Beach to build 38 townhomes with garages, an eight-story building with 336 apartments, 2,600 SF of retail space and a 401-space parking garage, Rojo told TRD. Roughly half of the apartments will be set aside as workforce housing.
LEASES
Informa, the producer of South Florida's biggest boat shows, will move into the recently completed Seagis @ Port Everglades, the South Florida Business Journal reported. Completion of the 200K SF warehouse at 1700 Eller Drive in Hollywood was announced earlier this month, and Informa expects to take occupancy by the end of the year.
Informa produces the Miami International Boat Show, the Fort Lauderdale International Boat Show and the Palm Beach International Boat Show and will use the building for storage and as its office space.
Pennsylvania-based Seagis was represented by Tom O’Loughlin and Larry Dinner at CBRE in lease negotiations, while Informa was represented by CBRE's Julie Berry.
Seagis built the warehouse on a 10-acre site that was previously an Alamo rental car lot, which sits less than a mile from the Port Everglades cruise terminal. The developer paid $30M for the site in December 2021.
CONSTRUCTION AND DEVELOPMENT
Construction was completed at Century Town Center in Doral, and tenants have begun moving into the project’s 326 apartments, according to a release.
Miami-based developers Mattoni Group and Century Homebuilders Group, along with Double C by Conconcreto, a South American developer, completed the pair of eight-story towers at 8175 NW 107th Ave. The buildings include 36K SF of retail and restaurant space and 50K SF of amenities, along with units ranging from studios to three-bedroom apartments that start at $2,095 per month.
Retail tenants at the property include My Salon, which offers rentable suites for stylists and beauty service providers; Kid Strong, a gym and activity center for kids aged one to 11; Jetset Pilates; Rumble, a boxing-focused fitness concept; and Tropical Smoothie.
The project was built with $67M in financing from Pacific West Bank, Connect CRE reported in 2022, and is part of a larger master-planned community called Midtown Doral.
***
Terreno Realty Corp. broke ground on two warehouses as part of the fourth phase of Countyline Corporate Park in Hialeah, according to a release. Both warehouses will have a 36-foot clear height, with one spanning 164K SF and the other spanning 158K SF.
The warehouses are being built on 17 acres at the intersection of Northwest 170th Street and 107th Avenue. They are slated for completion in 2025.
The entirety of the park’s fourth phase includes 2.2M SF of industrial space across 10 buildings. It is expected to be fully delivered in 2027. Terreno paid $174M in February 2023 for the 121 acres that comprise the park’s fourth phase, which is being built atop a former landfill.
***
The developer of a 32-acre mixed-use development in Sunrise is asking the city commission to approve substantial changes to its plans after bringing on Atlas Air, a cargo airline, as a potential anchor tenant, the South Florida Business Journal reported.
The development was previously called Westerra, but was recently renamed Radius by GL Commercial. It is located on vacant land on the south side of West Sunrise Boulevard east of Sawgrass Corporate Parkway.
GL Commercial, the commercial arm of Sunrise-based GL Homes, paid $34M for the site in 2019. That year, it secured approval to build 750K SF of office space, 50K SF of commercial space and 750 multifamily units, but it never moved ahead on the project.
The developer is seeking to modify its plan to allow for a 250K SF flight training center and simulator facility for Atlas Air, along with a 300-room hotel that would serve exclusively as corporate housing for the airline, SFBJ reported.
The project would be built in phases, with the first phase including the flight training center and 175 hotel rooms. The Sunrise City Commission is set to hear the proposal on Feb. 27.
The apartment component of The Wynwood Plaza topped out, with delivery slated for next year, according to a release.
The Wynwood Plaza is being built by New York-based developers L&L Holding Co. and Oak Row Equities in partnership with San Francisco-based Shorenstein Properties and locally based investor Claure Group.
Residences at The Wynwood Plaza will include 509 units ranging from studios to two-bedroom apartments. The 12-story office component of the development topped out in September. Claure Group, run by former SoftBank Group executive Marcelo Claure, is set to open a 25K SF headquarters on the eighth floor. Law firm Weitz & Luxenberg has agreed to open its first Miami office in an 18K SF space. The project is also slated to include 32K SF of retail space and a 26K SF public plaza.
The mixed-use project broke ground in March at 95 NW 29th St. after securing a $215M construction loan from Bank OZK last January. The developers paid $53M for the site in December 2021.
PEOPLE
Miami-based commercial real estate firm Gridline Properties hired Felipe Azenha and Ben Hoffman as senior associates, according to a release. The pair, which have 30 years of combined experience, will focus on development and investment sales in urban cores across South Florida.
Hoffman joins the firm after working as a commercial broker at Miami-based Fortune International Realty. He also worked at Gridics, a zoning technology company co-founded by Azenha, and led real estate acquisitions at the venture-backed hospitality startup Sonder. He’s currently part owner of the Toronto-based hospitality brand The Annex.
Azenha previously held roles in wealth management at ABN AMRO Bank, Itaú Private Bank and HSBC Bank before working at Zillow and StreetEasy, Zillow’s New York City-focused platform. Along with Gridics, he also co-founded CinderFit, which markets a patented fitness product.
