This Building Doubled in Value in Two Years

FORT LAUDERDALE, FL—Atrium West, an office building in Sunrise, FL, is demonstrating the worth of renovated class B assets. The 94,000-square-foot office building just sold for $11 million—more than doubling the value in just two years and marking renewed investor interest in Broward's suburban office market.

David Duckworth, vice president of Investment Sales at Avison Young, represented the seller, ROVI Properties. ROVI purchased the class B property in 2012 for $4.8 million. Wells Fargo sold the asset in 2012 at a 51% loss, so the asset essentially regained value it lost in the downturn.

“Upon the seller's request not to widely market the property and only share the opportunity with a handful of buyers, we were tasked with locating an investor that was looking to acquire an asset which fit the exact profile of Atrium West,” explains Duckworth. “We were able to secure a buyer who was attracted to the quality and stability of the asset. After a complex negotiation process, the ultimate result was the successful completion of a transaction with our client more than doubling their initial investment.”

Located at 7771 West Oakland Park Boulevard, Atrium West is 90% occupied. Douglas Pike Associates, the buyer, will enjoy strong in-place income along with a stable rent roll with limited rollover in the next two years.

“The recent comprehensive renovations of the property added tremendous value and directly led to an increase in occupancy,” says Duckworth. “With office building sales continuing to improve in Broward due to strong leasing activity and rising rental rates, this sale is a testament to the renewed confidence in the market for office investors.”

Atrium West is minutes away from Florida's Turnpike, Sawgrass Expressway, and Interstate 95. Interior renovations include new porcelain tile floors, a brand new sculpture fountain, interior landscape, and modern furniture throughout the new lobby. The exterior of the building has new landscaping.

“2014 marked a significant increase in demand from both investors and lenders in the office sector evidenced by the fact that there were a number of top-tier senior lenders that competed to provide a loan for this best in class office asset,” HFF director Chris Drew tells GlobeSt.com. Drew recently represented the borrowers, CNL Commercial Real Estate and Long Wharf Real Estate Partners, in the refinancing of Sawgrass Lake Center, which is also in Sunrise.