Breakers Capital Sells West Palm Office Building to NJ-Based Firm
The IRS will vacate more than 32,000 square feet in the third quarter of this year, which will lower the building’s occupancy to 61.1% and create what Cushman & Wakefield terms as a tremendous value-add opportunity for Capstone.
WEST PLAM BEACH, FL—An affiliate of Miami-based Breakers Capital has sold the 1700 Palm Beach Lakes office building here to Hackensack, NJ-based Capstone for $19.35 million.
The sale of the 113,964-square-foot, 11-story office building calculated out to approximately $170-per-square-foot. The Cushman & Wakefield Capital Markets team of Scott O’Donnell, Dominic Montazemi, Greg Miller, Miguel Alcivar and Michael Ciadella, with support from Cushman & Wakefield agency leasing specialist Anthony Librizzi, negotiated the sale on behalf of 1700 PBL LLC, an affiliate of Breakers Capital.
Jason Hochman of Cushman & Wakefield’s Equity, Debt & Structured Finance group assisted Capstone in securing an $18.4-million acquisition loan from Blue Vista Finance in connection with the firm’s purchase of the office building that was developed in 1988 on a 1.24-acre site at 1700 Palm Beach Lakes Boulevard.
The property was 89.4% occupied at the time of sale. Notable tenants include the Internal Revenue Service, Valley National Bank, Uniters North America and Comcast Spotlight.
The IRS will vacate more than 32,000 square feet in the third quarter of this year, which will lower the building’s occupancy to 61.1% and create what Cushman & Wakefield terms as a tremendous value-add opportunity for Capstone.
“The IRS’ departure actually creates an exceptional value-add opportunity to update a significant swath of older space in the building, bringing it more in line with the needs of modern, smaller tenants which are prevalent in this submarket,” says C&W’s O’Donnell. “The building is a best-in-class asset and offers Capstone upside potential given the ideal combination of positive market fundamentals, rapid nearby development and potential for a complete property rebranding in one of South Florida’s most exciting cities.”
Breakers Capital recently completed a capital investment program valued at approximately $2 million that included a complete elevator modernization, complete lobby and garage restorations and a full-building generator replacement.
Cushman adds that the office building is positioned to capitalize on the corridor’s recent transformation, marked by the development of the Palm Beach Outlets and the Hilton Garden Inn West Palm Beach at the Outlets, which serves as the spring training home of the Houston Astros.