PALM BEACH, FL—In what brokers call an example of strong investor interest in income-producing assets with upside potential in promising locations, 314 Clematis Street has traded for $3.2 million. PI-314 Clematis acquired the asset from an affiliate of Ram.

David Donnellan, a first vice president with CBRE, along with Todd Weintraub, represented the seller. CBRE has also been retained by the new owners to provide leasing services. Joshua Nolan and Anthony Librizzi of CBRE’s Palm Beach Gardens office will lead the charge.

In noting the trend toward investors targeting assets like 314 Clematis Street, Donnellan tells GlobeSt.com CBRE also sold two centers in suburban Palm Beach County this year, west of West Palm Beach.  

“The Southern Palms located at 8751 Southern Boulevard sold in January for $31.4 million and is anchored by Dick’s and Kohl’s but had significant side shop vacant space,” he says. “We also recently closed Groves at Royal Palm, a small unanchored strip center of 19,000 square feet that was 50% leased at time of sale for $2.59 million. Both centers were hit by the downturn and had vacancy issues, but both had substantial investor interest.”

Donnellan believes the recent sale of the 30,000-square-foot retail/office building at 314 Clematis Street in West Palm Beach marks an upcoming revitalization for the area, which has demonstrated dynamic signs of growth. Two other buildings in the area have helped provide a spark.

“The Blackstone Building sold recently at the corner of Clematis and Dixie Highway for almost $200 per square foot, and the Comeau Building, a 10-story office building across from 314 Clematis, was bought in foreclosure a few years ago,” Donnellan says. “The building was mostly empty at the time but has experienced strong office lease-up over the past year. Also, a new hotel is planned for the corner of Clematis and Dixie Highway.”

For its part, 314 Clematis Street was built in 1923 and renovated in 2005. The property is 93% occupied with the ground floor occupied entirely by a nightclub known as Off the Hookah, and a mix of office tenants on the second floor. Donnellan says it was a market value trade that reflected the property’s 60% occupancy level.