FORT LAUDERDALE, FL—Often times driving the best disposition price on a commercial real estate asset means getting creative with leasing prior to marketing the asset. Such is the case with Plantation Tech 1, a 37,357-square-foot office building located at 6600 Northwest 16th Street within, Plantation Technology Park in the Fort Lauderdale suburb of Plantation, FL.
“The investment community remains fixated on value-add properties, but as the market recovers those opportunities are drying up,” David Duckworth, vice president of Investment sales with Avison Young, tells GlobeSt.com. “It is good time for investors to adjust their sights and start to focus on stabilized properties that offer solid returns with less risk.”
And therein lies the key to the value-add price-driving strategy Avison, which represented the seller, used at Plantation Tech 1. Matecumbe Rand Plantation I, sold the office building for $2.1 million, more than it would likely have fetched without this leasing strategy.
“Upon initial evaluation of the asset, we recommended that upcoming expiring leases be extended to add value and marketability of the building,” Duckworth says. “Once completed, we listed the building on the market and had a deal principally agreed upon within 30 days.”
Plantation Tech I is 100% occupied, single-story office building. Duckworth reports it was highly sought after because it offers solid in-place cash flow along with value add potential. What’s more, the Plantation submarket is attractive to tenants because of the ability to lease space at rental rates below Broward County averages and it offers flexible zoning, which allows for a myriad of end-users.
According to Avison, recent market reports confirm that the availability of attractive financing and overall improving market conditions positively impacted the volume of investment sales in the first quarter. Says Duckworth, “The execution of this transaction could not have been completed without a great relationship with both the buyer and the seller, which enabled steadfast navigation through the logistics and a mutually beneficial outcome.”
Plantation Technology Park was built in 1948 as the first industrial park in Broward County. The park is offers about 160 acres located in the northeastern section of the City of Plantation. The area is home to Motorola Mobility Inc.’s 1 million-square-foot headquarters facility and it is located near the Florida Turnpike, Sunrise Boulevard, and bordering the City of Fort Lauderdale.