BH Group and PEBB Enterprises completed the $104 million acquisition of the Office Depot headquarters campus in Boca Raton.
Berkadia arranged the debt for the acquisition – a $63 million, fixed-rate loan. Florida Managing Director Scott Wadler and Senior Managing Director Jaret Turkell of Berkadia Miami, along with Senior Managing Director Mitch Sinberg, Managing Directors Brad Williamson and Matt Robbins and Vice President Michael Basinski secured the loan on behalf of the joint venture.
The transaction includes an agreement to lease back a significant portion of the campus to Office Depot.
Located at 6600 N. Military Trail, the campus includes 650,000 square feet of office buildings on nearly 29 acres overlooking the Broken Sound Country Club’s golf course. It features an array of amenities for future office tenants to enjoy, such as a state-of-the-art fitness center, cafeteria, auditorium, many conference rooms and covered parking.
Office Depot agreed to a long-term lease back for 285,000 square feet as part of the transaction, which closed on April 5.
City National Bank provided acquisition financing to the joint venture. Financial details were not disclosed.
“We are excited to team up with BH Group on this incredible acquisition,” PEBB President and CEO Ian Weiner said. “The campus can accommodate the pent-up demand for Boca Raton office space from both established and new-to-market companies.”
John Criddle, Joe Freitas and Max Pawk with CBRE will be marketing the North Tower for lease on behalf of BH and PEBB.
“This is an experienced ownership group that recognized the value of this property and its amenity-rich location. For the first time since the campus was constructed, the North Tower office building will be available as a multi-tenant property with floorplates of approximately 40,000 square feet,” said CBRE First Vice President Freitas. “Boca Raton is buzzing with development activity, and tenants of this property will be able to enjoy the growing community nearby, including new multifamily and retail developments.”
Ownership plans to renovate the North entrance of what will be the multi-tenant office building, deliver speculative suites ranging from approximately 2,500 to 5,000 rentable square feet on the third floor, and enhance the overall aesthetics of the interior/exterior of the property.
“Located on the corner of Clint Moore Road and N. Military Trail in Boca Raton, this property presents a great value for any tenants looking to relocate their headquarters within South Florida or from out of state. Employers are attracted to the Boca Raton community for its central location within South Florida, the top tier housing, strong hospital system, and top-rated education systems, including public and private schools along with two universities,” said CBRE Executive Vice President Criddle.
“This acquisition is a true win/win for our partnership,” Isaac Toledano of BH Group said. “It enables a major employer to remain headquartered in Boca Raton, while unlocking the vast potential of the remaining office space and overall property.”
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