Apollo Sells Four-Building Portfolio for Nearly $93M

WEST PALM BEACH, FL-Apollo Real Estate Advisors sold a four-building office portfolio aggregating 442,077 sf to JP Morgan Asset Management Co. for $92.5 million or just under $209.24 per sf. The buildings are Bank of America Center, Centurion Tower, Northpoint Corporate Center and 1400 Centrepark, and all were built in the mid-1980s.

Bank of America Center is a 10-story building at 625 N. Flagler Dr. It aggregates 105,057 sf and is 97% leased. Bank of America anchors and Becker Poliakoff is also a major tenant. The 14-story Centurion Tower aggregates 144,141 sf. It is at 1601 Forum Place and is 89% leased. Oxbow Corp. and BDO Seidman are among the tenants. Northpoint Corporate Center at 701 Northpoint Parkway is a five-story building with 98,962 sf. It is 88% leased, and Bellsouth and Infiniti Radio are key tenants. The 1400 Centrepark building at 1400 Centrepark Blvd. is a 10-story structure aggregating 93,917 sf. Key tenants are Shoes for Crews and Laird Plastics, and it is 88% occupied.

Hermen Rodriguez, managing director, Manuel de Zarraga, executive managing director, and Sabrina Hochman, real estate analyst in the Miami office of Holliday Fenoglio Fowler, represented New York-based Apollo in marketing the portfolio and in the transaction. “It’s probably the largest portfolio sale in West Palm Beach in several years,” Rodriguez tells GlobeSt.com. “Apollo had held the properties for awhile and wanted to realize their profits. It was a great opportunity to acquire a ‘critical mass’ in one of South Florida’s most sought-after markets, and these are high quality buildings at below replacement cost.”

Justin Krebs, VP of acquisitions in JP Morgan’s New York City office, represented the buyer, which acquired a fee simple interest in the portfolio on behalf of its income and growth fund. The portfolio is free and clear of existing debt. A team in the Miami real estate department of the New York City-based law firm of Stroock & Stroock & Lavan negotiated terms of the acquisition for JP Morgan and also acquisition financing, which was provided by Atlanta-based Column Financial Inc. That team included Manny Fernandez, Jonathan Kurry and Martha Rabbitt.