Office Depot's Headquarters To Be Sold By Parent Company
The office building that houses one of the nation's largest office supply companies is being sold to a pair of developers.
The ODP Corp., the parent company of Office Depot and OfficeMax, has agreed to sell its Boca Raton headquarters and lease a portion of it back from the new owners for at least two years, it announced Wednesday. The company didn't disclose the buyer or sale price, but said it expects the transaction to close by the end of the year.
“I’m excited about this opportunity and our commitment to maintaining Boca Raton as our headquarters and base of operations while continuing to embrace our low-cost flexible business model,” ODP Corp. CEO Gerry Smith said in a statement. “This is another example of how we are committed to leveraging our assets in the best way possible, enhancing our balance sheet and identifying smart ways to drive The ODP Corporation’s long-term growth and success.”
Boca Raton-based PEBB Enterprises and Miami-based BH Group are the buyers of the 650K SF office campus that sits on 28.9 acres at 6600 North Military Trail, the South Florida Business Journal reports. ODP acquired the complex for $132M in 2017, according to the SFBJ, but the price PEBB and BH are paying is unclear.
ODP is in the midst of cost-cutting mode after the pandemic took a bite out of the office supply business. It closed 71 retail locations over the last year, it said in its second-quarter earnings report, and reported $2B less in sales than in Q2 2021.
PEBB is one of the most active real estate firms in Boca Raton, acquiring multiple buildings in the 700-acre Park at Broken Sound in the past year, The Real Deal reported. It also has a pattern of acquiring corporate headquarters — in 2018, PEBB and RAIT Financial Trust acquired ADT’s 10-acre headquarters, also located inside the Park at Broken Sound, for $42M.
