This Week's South Florida Deal Sheet: Singapore REIT Sells Boca Raton Office For Loss
The 201K SF One Town Center office building in Boca Raton traded for $82M, a nearly 18% discount on the seller’s $99.5M purchase price in 2021.
Prime US-One Town Center LLC, an affiliate of Singapore-based Prime US REIT, sold the office building at 1 Town Center Road along with a 435-space parking garage and 274-car surface lot to Miles Capital LLC, property records indicate. The buyer entity is controlled by Nader Ohebshalom and Babak Ebrahimzadeh of Miami-based Gatsby Florida.
The sale included $51M in new debt from Wells Fargo, according to property intelligence platform Vizzda. The 10-story Class-A office building was built in 1990 on a 10-acre site.
One Town Center was 99.7% leased in the first quarter, according to an investor presentation from Prime US REIT reported by the South Florida Business Journal. It had a $85M valuation with a 7% capitalization rate as of December, compared to a $90.3M valuation a year earlier.
SALES
Fortress Investment Group took over the Yacht Haven Park & Marina in Fort Lauderdale as part of a $86M deed-in-lieu-of-foreclosure transaction, records from Vizzda confirm.
The 20-acre property at 2323 W. State Road 84 has 255 spaces for recreational vehicles and a 55-slip marina on the South Fork New River, just northwest of Fort Lauderdale-Hollywood International Airport.
Fort Lauderdale Motorcoach Resort and Yacht Club LLC, managed by Gary Anthony Cioffi in Hicksville, New York, transferred the property to CH RV Haven LLC, the Fortress entity.
The entity managed by Cioffi purchased the mobile home park and marina in July 2021 for $58M, the South Florida Business Journal reported at the time. Fortress provided an $82M mortgage to the buyer at the time.
After acquiring the property, Cioffi announced a $26M renovation to “transform the property into the premier motorcoach and yachting destination in South Florida,” the SFBJ reported.
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Clarion Partners paid $49.4M to acquire the 197-unit Manor in Plantation apartments from an affiliate of Nuveen Real Estate, records from Vizzda confirm.
The 2.6-acre property sold for around $251K per unit, a slight discount from its 2014 purchase price of $52M by Nuveen. The real estate arm of pension fund and investment giant TIAA purchased the property the same year it was completed by the Related Group.
The Manor in Plantation, located at 601 NW 82nd Ave., delivered in 2013 and includes a six-story building with 181 apartments along with 16 townhouses spread across separate three-story buildings. One- and two-bedroom apartments are listed for rent online from $1,978 per month to $4,882 per month.
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Diversified Realty Development sold most of the buildings in The Shoppes at Monterra Commons in Cooper City for $18.5M, roughly one year after the Deerfield Beach-based developer completed the plaza, records from Vizzda confirm.
Melio Monterra 1 LLC, a Fort Lauderdale-based entity led by Job and Rocio de Ojeda, purchased four out of five single-story retail properties at the plaza: 3500, 3700, 3800 and 3900 N. University Drive. The deal didn’t include the development’s parking lots or the building at 3600 N. University Drive.
The buyer took out a $10M mortgage from Wells Fargo to finance the acquisition, which totals 37K SF of retail space that's fully leased to tenants including a First Watch breakfast restaurant, Culver’s, Huey Magoo’s Chicken Tenders and a day care center.
Diversified Realty Development acquired the development site for $4.2M in 2020, property records indicate.
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Delta Investors Group, an affiliate of Chicago-based real estate firm Zaragon, sold a 105K SF office building in Plantation for $15.6M. Ohio-based life sciences firm Steris Instrument Management Services was the buyer, records from Vizzda confirm.
The two-story office building at 1801 NW 66th Ave. was built on 6 acres in 1983. The multitenant property traded for around $150 per SF, a discount from the $16.6M that Zaragon paid to acquire the building in 2018.
Steris provides products that handle sterilization and infection control in medical settings. The firm already has a Cooper City office at 12229 SW 53rd St. and operations in more than 100 countries.
CONSTRUCTION AND DEVELOPMENT
Miami-based Crescent Heights is looking for a buyer for its 2-acre development site at 2200 Biscayne Blvd. in Edgewater, according to a release.
A team led by Colliers broker Virgilio Fernandez is marketing the site as a covered land opportunity. The property currently hosts two office buildings totaling 46K SF, a two-story parking garage and 11K SF of ground-floor retail.
The offering is inside an opportunity zone and could leverage the Live Local Act, the state’s affordable housing law, to build more than 2,000 residential units totaling more than 3M SF at the property, according to the release. The Federal Aviation Administration maximum height for the property is 649 feet.
The Colliers team declined to comment on a target value for the property, which went up without a sale price and is currently accepting offers.
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Miami’s Urban Development Review Board rejected a proposal for a 55-story tower in Edgewater, The Real Deal reported.
New York developers SB Development and Hazelton Capital Corp. sought to build a 463-unit project on a 0.3-acre, wedge-shaped parcel at 419 NE 19th St. Board members praised the project’s design but said it wasn’t a good fit for the small site, voting 6-0 to recommend rejecting the project.
Parking was a sticking point for board members. The original proposal had 172 parking spaces, while the one submitted this month had 180, which members said was still too few to support the project’s size.
The UDRB considers every proposed project in Miami exceeding 200K SF, offering their recommendations to the city’s planning director, who has final say.
SB Development acquired the site in 2022 through the $12M buyout of the five-story Belmar Condominium. It will have to return to the UDRB with a new proposal if the planning director follows the board’s recommendation.
The City of Miami Planning, Zoning and Appeals Board approved plans for a 28-story apartment complex at 1411 NW North River Drive, according to a release.
Canada-based H&R REIT is partnering with Coral Gables-based Urban-X Group on the 475-unit development located directly north of the River Landing Shops & Residences.
The market-rate apartments, named MidRiverVu, would be connected to an eight-level parking garage and have an emphasis on sustainable design, with rain gardens, green roofs and a system to manage runoff at the waterfront site.
Approval of MidRiverVu included the expansion of the River Landing Special Area Plan just west of Downtown Miami where H&R and Urban-X built River Landing, a 2.2M SF complex with retail space and apartments that are 97% leased and office space that’s 75% occupied.
LEASES
Sant Ambroeus, a restaurant and coffee bar, will open its first Miami location at The Fifth Miami Beach, an under-construction boutique office building, according to a release.
The restaurant will take more than 7K SF on the ground floor of The Fifth Miami Beach, a joint venture between developers Sumaida + Khurana and Bizzi + Bilgili. Construction on the 93K SF property has already begun with delivery slated for next year. The restaurant is set to open before the end of 2025.
Sant Ambroeus first opened in Milan in 1936 and opened a flagship Manhattan location in 1982. It now has additional locations in New York, Palm Beach and Aspen.
Asking rents for the 60K SF of office space at The Fifth Miami Beach are north of $170 per SF. Manhattan-based hedge fund J. Goldman & Co. became the first tenant to sign on with a 10K SF lease in February, two months after Cain International provided a $44M construction loan for the project.
Aaron Butler of Avenue Real Estate Partners represented The Fifth Miami Beach in the restaurant lease. Cyril Bijaoui and Noa Figari, founding partners of Longstead, represented Sant Ambroeus.
