BOCA RATON, FL-A joint venture between Fort Lauderdale-based Cypress Creek Capital Inc. and Penn-Florida Cos., which is based here, has acquired Boca 1515 for $26.5 million, or nearly $151 per sf. Washington, DC-based Multi-Employer Property Trust sold the 176,000-sf office building at 1515 S. Federal Highway.

The asset was built in 1986 and is 55% leased. The new owner plans to invest $2 million in renovations, Seth Werner, chairman and CEO of Cypress Creek, tells GlobeSt.com. “We’ll renovate the second-generation space that is currently vacant and the exterior, which is now somewhat uninviting,” he says. The lobby was recently renovated.

Werner says the rental rates will range between $25 per sf and $28 per sf, “depending on location within the building, creditworthiness of the tenant and terms and size of a lease.” This is Cypress Creek’s first joint venture with Penn-Florida, which will handle property management and leasing. Werner says, “I’m hopeful this will be the JV’s first of many acquisitions.”

Penn-Florida’s primary specialty is office buildings, while Cypress Creek acquires shopping centers and industrial properties in addition to office assets. “We like to find a JV partner/operator in local areas in order to expand our business without expanding our infrastructure,” Werner says. Mark A. Gensheimer heads Penn-Florida as president.

Seattle-based Kennedy Associates Real Estate Counsel Inc. advised MEPT, and the Miami office of Holliday Fenoglio Fowler represented the seller in the transaction. Mitchell Kirschner of the locally based Hodgson Russ law firm advised the JV, which negotiated the transaction in house. Al Rex of the local office of Birmingham, AL-based Collateral Mortgage Capital arranged first-mortgage financing of an undisclosed amount from Principal Global Investors, which was represented by Mary Dubas.

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