Sabadell United Bank Building Trades for $15M

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PALM BEACH, FL—The Sabadell United Bank Building has a new owner. Brookwood Sabadell Investors purchased the 113,862-square-foot office building from PEBB Palm Beach Lakes for $15.423 million.

Dominic Montazemi, vice president of the CBRE’s Private Capital Group, and Scott O’Donnell, senior vice president of the group, represented the seller in the deal. Team members Marty Busekrus and Miguel Alcivar, as well as vice chairman Christian Lee of CBRE's Institutional Group, also worked on the deal.

“The property enjoys long tenancy tenure, with 44.5% of the building’s square footage having been occupied by the same six tenants since before the year 2000,” Montazemi tells GlobeSt.com. “Additionally, The Palm Beach Lakes Boulevard corridor is on the verge of a real estate renaissance with the long anticipated redevelopment of the Palm Beach Mall, by New England Development, Eastern Real Estate, and Lubert-Adler. The mall, Palm Beach Outlets, will become a high-end outlet mall featuring open air space and luxury retailers.”

Located at 1645 Palm Beach Lakes Boulevard, the 12-story Sabadell United Bank Building was constructed in 1980 and includes a five-level parking structure. The seller recently invested more than $700,000 in common area and building system improvements, aggressive rent roll stabilization, and direct property management.

“The turn-around in value reflected in the $135 per square foot sale price underscores investor demand for functional assets with a strong stable of tenants, and expectation that the redevelopment of the mall will only increase future tenant demand for the corridor,” Montazemi says. “The buyer was attracted to the property’s strong presence and identity along Palm Beach Lakes Corridor, solid tenant base and continued upside presented in the continued lease-up of vacancy in the building as the new mall revitalizes the Palm Beach Lakes corridor.”

Lee and team members, Charles Foschini and Chris Apone of the CBRE Capital Markets Institutional Group secured an $11.5 million loan on behalf of Brookwood Financial Partners through a major lender. Terms of the loan include a three-year term, 25-year amortization and a maximum LTV of 70%.