PALM BEACH, FL—Columbia Medical Plaza, 43,797-square-foot medical office park at 4700 North Congress Avenue in West Palm Beach, FL, has traded hands. Dallas-based Velocis West Palm, LP acquired the medical office asset from Jupiter, FL-based FLF Columbia, LLC for $5.702 million.
“We received a tremendous amount of interest from investment firms that have historically focused on traditional office assets but, like this buyer, are increasingly allocating equity toward medical office buildings in South Florida,” says Scott O’Donnell, senior vice president with CBRE‘s Private Capital Group in Boca Raton, who represented the seller. “Positive demographic trends, such as the continued in-migration of seniors to the region, makes this type of asset extremely attractive to investors.”
Built in 1987, Columbia Medical Plaza is located directly across from the 250-bed West Palm Hospital, owned by Hospital Corporation of America. The healthcare real estate was 84% occupied at the time of the sale.
The owner acquired the medical office property as a distressed asset—with occupancy below 50% in 2010 and subsequently implemented a successful repositioning strategy that included $800,000 in capital improvements. O’Donnell says, “The seller was handsomely rewarded when he sold the asset for nearly double the initial investment.”
CBRE’s local leasing, Private Capital Group, and national Healthcare Capital Markets Group collaborated on the sale. O’Donnell, Dominic Montazemi and Miguel Alcivar, all with CBRE’s Private Capital Group in Boca Raton, marketed the property with assistance from Jason Hochman of CBRE’s Debt and Equity Finance group in Miami; Chris Bodnar, with CBRE’s Healthcare Capital Markets Group in Denver; Lee Asher with CBRE’s Healthcare Capital Markets Group in Atlanta; and Jeff Kelly and Robert Smith, CBRE leasing professionals based in Boca Raton.