Berger Commercial Realty, Colliers Broker Sale Of Office Building In West Palm Beach

District Pointe LLC, a JV between Index Investment Group and Verdex Construction, purchased a 65,760-square-foot office building located at 1501 Belvedere Road in West Palm Beach for $13.4 million. By taking a proactive approach, Colliers was able to work with Index and Verdex on securing the opportunity prior to the property being widely marketed.

Michael Feuerman, Steve Hyatt and Daniel Silver of Berger Commercial Realty represented the seller, CEMEX. Executive Managing Director Mark M. Rubin and Director Bastian Laggerbauer of Colliers | South Florida Investment Services Team represented Index Investment Group, a privately-owned development company, and Verdex Construction, a top-10 South Florida construction company, on the purchase.

The property has operated as a single-tenant user building since its construction in 1983 and has been occupied by its owner Rinker/CEMEX since then. The building will be rebranded as “District Pointe,” repositioned and completely renovated from a single tenant to a multi-tenant modern office building where Verdex will be a full floor tenant. The name came from the building’s gateway position between the revitalized West Palm Beach Warehouse District and the Palm Beach International Airport.

“This was a strategic acquisition for Index Investment Group and Verdex Construction,” said Laggerbauer. “Increasing office rental rates in the Downtown core are displacing tenants to properties on the outskirts – District Pointe’s comprehensive renovation and location will make it an attractive alternative for tenants in the market.”

As sale prices for office buildings in West Palm Beach’s core downtown market continue to rise with more owners investing in capital improvements and necessary building renovations, average rental rates in the West Palm Beach downtown area have almost doubled to above $60.00, per square foot (gross).

“The broader West Palm Beach office market provides a haven for tenants looking for more affordable rents, while remaining close to the urban core,” said Rubin. “The superior access to the Airport, surrounding infrastructure and investments in these peripheral West Palm Beach buildings presents a value-add opportunity for landlords to renovate older office supply to meet the growing demand.”

Index Investment Group with its North American Headquarters in Jupiter, FL, was founded in Sweden in 1998 by Bjarne Borg and Fredrik Alama, two dynamic entrepreneurs with a never-ending dedication to business opportunities. The firm has developed more than 6.8 million square feet of commercial space and over 8,400 residential units. Verdex Construction was founded by Rex B. Kirby, Jr., a 40-year veteran of the construction industry and the company has in only 7 years become one of the top-10 South Florida construction companies.