PALM BEACH, FL—Class B office buildings are en vogue, at least in Grover Corlew‘s eyes. Grover affiliate G&C Brandywine Investors just snapped up the class B Brandywine Centre I.
Brandywine Centre I is a 69,715-square-foot office building with a restaurant outparcel. The building is located at 580 and 600 Village Boulevard in West Palm Beach, FL.
BCI Associates sold the class B office building to Brandywine for $7 million. BCI owned the property for more than a decade before selling.
“To their mutual satisfaction, the two principals to the transaction were able to work through a tenant default situation that had a major impact on the cash flow to get this closed on a timely basis,” says CBRE senior vice president Scott O’Donnell. “Value-add office assets continue to be highly sought by private equity investors.”
CBRE represented both the buyer and the seller in the transaction. The property is 69% leased at time of closing. CBRE also arranged $5.039 million in financing for the buyer from a non-recourse bridge lender.
“The opportunities are often in suburban markets where the smaller, less corporate tenants dominate,” says O’Donnell. “Experienced operators like Grover & Corlew, who have acquired three suburban office buildings in South Florida over the past two years, are investing in these properties and improving their operating income and value over time.”
Built in 1987, the class B office building sits on 5.46 acres. Brandywine Centre I is a newly renovated office building located less than a mile away from the new Palm Beach Outlets that includes a 9,100-square-foot restaurant outparcel.
“Given a quick closing time-table, we found a reliable lender who pre-qualified the transaction in advance, provided strong terms and worked diligently during the closing process,” says Jason Hochman, vice president with CBRE’s Debt and Structured Finance Group. “The result was a smooth closing and a good loan that met our client’s needs. The lender closed in just over 30 days from loan application.”