KBS and Prime US REIT have acquired One Town Center in Boca Raton, Florida. The investors purchased the property for $99.5 million from a joint venture between CP Group and Siguler Guff & Co. The purchase is the third acquisition for Prime since it entered the Singapore Exchange in 2019. KBS will serve as the US-based asset manager for the portfolio.

One Town Center is a 10-story 191,294-square-foot office tower with 95% occupancy and strong in-place cash flow. It is a highly desirable asset in the market, as illustrated by the occupancy. According to data from Newmark, leasing activity was up 29% last year, and South Florida's unemployment rate has improved, falling to 6.3% during the first quarter of 2021. Palm Beach County has the lowest unemployment rate in the region at 4.5%.

One reason South Florida's office market is outperforming: the fintech market. The region has emerged as one of the leading fintech markets in the country. Asking rents for class-A office space in Miami Beach have rebounded to $56.66 per square foot, up 10.2% year-over-year, according to a new report from Colliers. The submarket is also highly constrained in terms of supply, especially when it comes to viable office space. Most investors, wary of high land prices, have gravitated instead toward luxury hotels or boutique condo projects, but those same factors have also kept demand booming. This is in addition to an already prominent roster of law firms, banks and public sector employers in the Downtown area.