Suburban Fort Lauderdale Office’s Value Cut In Half In $17M Sale
A less than 20-year-old suburban Fort Lauderdale office building traded for $17M, nearly half the property’s previous $32M purchase price in 2013.
Galium Capital purchased the five-story, 129K SF office building at 1300 Concord Terrace in Sunrise from a joint venture of Boston-based Barings and MassMutual Financial Group.
North Miami-based New Wave Loans provided the buyer with a $5.5M mortgage for the acquisition, according to records from property intelligence platform Vizzda.
“The robust demand for office space and strong leasing momentum suggests a very positive future,” CBRE Vice Chairman Christian Lee, who helped broker the sale for the buyer, said in a statement. “This is a submarket to bet on.”
The property, called Lake Shore Plaza II, was built in 2008 on nearly 9 acres roughly 11 miles outside Downtown Fort Lauderdale. It is billed as a Class-A office with floor-to-ceiling hurricane impact windows and a double-height atrium lobby.
The property is 50% leased, with Blanca Commercial Real Estate listing space there at $25 per SF on a triple-net basis.
“This property’s high quality and history is compelling at today’s pricing,” Jonathan Slomianski, director of acquisitions of Galium Capital, said in a statement. “We see significant potential, and are eager to invest in upgrades that will elevate the building and provide modern, enhanced workspaces for both current and future tenants.”
Tenants at the property include New York Life Insurance Co., Copeland Corp., Farmers Insurance and the Florida Bar Association, a Blanca spokesperson confirmed.
Lee and CBRE Vice President Sean Kelly were part of a team working with the seller that also included brokers Amy Julian, Andrew Chilgren and Tom Rappa and analyst Matthew Lee. Blanca brokers Chris Gallagher, Christina Stine Jolley and Andres del Corral represented the sellers.
North Miami Beach-based Galium, led by Jacques Bessoudo and Iser Rabinovitz, was founded in 2017 and has more than $600M in commercial real estate assets under management, according to a release.
At least two other Broward County office sales to close recently also traded at a discount, with Bridge Investment Group selling a 514K SF office park in Sunrise for a 35% discount and Starwood Capital Group taking a 45% haircut on a four-story Miramar property.
The trades come as South Florida office sales have declined from not just peak pandemic years but also from 2018 and 2019 levels, according to CoStar data reported by The Real Deal.
In the 12 months ending on Sept. 11, South Florida saw $1.4B in office investment sales, down nearly 46% from 2019.
Still, there are signs that the right kind of tower in the region can command a premium.
Elliott Investment Management is nearing a deal to buy 701 Brickell Ave. in Miami’s financial district from Nuveen Real Estate for $450M, Bloomberg reported, citing anonymous sources.
If the sale closes, it would be for more than double the $172M that property records indicate Nuveen’s parent company, TIAA, paid for the property in 2002.
