FORT LAUDERDALE, FL—Miramar Professional Plaza, a 29,400-square-foot office building in Miramar, FL, just sold for $3.3 million. That's not a high price but the appreciation is staggering. The property tripled in value within two and a half years.
David Duckworth, vice president of Investment Sales with Avison Young, represented the seller, Palm Lakes II Associates. The office building is located at 8910 Miramar Parkway.
“The market remains very bullish, and it's being driven primarily by a large pool of investors seeking to place 1031 exchange proceeds,” says Duckworth. “The buyer of Miramar Professional Plaza was able to place his 1031 requirement with a quality office building. It is highly occupied and provides an attractive in-place cap rate return.”
Miramar Professional Plaza is located in the high-barrier-to-entry City of Miramar in Broward County. Pacific Stewart Holdings acquired the office building in 2012.
The three-story class B office building sits on about 1.59 acres in the heart of Miramar, home to an expanding population exceeding 100,000 and known as a family-oriented community. Miramar Professional Plaza has almost 200 linear feet of direct frontage along Miramar Parkway and sits near the region's most-traveled thoroughfares.
According to Avison, investor confidence in Broward County office buildings remains strong thanks to an active leasing market and rising rental rates. The sale of Miramar Professional Plaza underscores the continued confidence in the market.
“Many investors took risks by purchasing underperforming assets between 2010 and 2013, however they are now able to realize incredible returns,” says Duckworth. “We are advising many of our clients to sell stabilized assets now, and redeploy capital into distressed assets or to upgrade the quality of their portfolio.”
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