Cushman & Wakefield brokered the sale of Wells Fargo Plaza, a 102,309-square-foot, Class A two-building office complex in Boca Raton.
Executive Director Mike Davis, Senior Director Michael Lerner, and Senior Director Rick Brugge represented New York-based Real Estate Capital Partners in the transaction.
The buyer was Boca Raton-based IP Capital Partners, LLC. Josh Procacci, MBA is listed as Co-Founder and Chief Investment Officer at IP Capital.
The property traded for $23.16 million. It last sold in December 2002 for $26.6 million, according to Palm Beach County records.
Wells Fargo Plaza was built in two phases in 1990 and 2000 on a ±4.2-acre parcel at 925 and 975 South Federal Highway in Boca Raton. The complex is comprised of a seven-story, 88,509-square-foot office building, an adjacent two-story,13,800-square-foot office/retail bank building, and a six-level parking garage housing 598 spaces. The complex was designed by internationally renowned architect Phillip Johnson and offers a highly-desirable downtown Boca Raton location along with high-end finishes such as polished granite flooring in the lobby and elevator cabs and spectacular views of the Atlantic Ocean from the upper floors.
At the time of sale, the building was 89.2 percent occupied. Notable tenants include Kanner & Pintaluga, P.A., which signed a 45,000-square-foot lease deal in February, Wells Fargo, and Grossman & Roth, P.A.
“This boutique office property is situated at one of the premier intersections in downtown Boca Raton with superior amenities and immediate access to high-end residential and decision-makers,” said Davis.
Downtown Boca Raton has undergone a major revitalization in recent years that has made it a model of new urbanism by effectively integrating office, retail, residential, and entertainment components through a pedestrian-friendly design and quality architecture. Situated at the corner of South Federal Highway and Camino Real, Wells Fargo Plaza provides an ideal location for major banks, financial services firms, and businesses from a wide variety of industries
Cushman & Wakefield’s 2Q 2015 Palm Beach County Office Marketbeat report, produced by Florida Research Manager Chris Owen, indicates that Downtown Boca Raton’s revitalization in recent years has stoked the interest of both investors and users.
“Investors continue to chase yield and below-replacement-cost pricing in the Palm Beach market,” wrote Owen. “The Palm Beach investment sales pipeline is strengthening, and we expect to see a significant pickup in transactions throughout the remainder of 2015.”
“The positive fundamentals for the Palm Beach office market are growing each quarter,” added Owen. “While quality available office space remains limited in the market, tenant demand remains high with product becoming scarce.”
“Rents are trending higher due to an imbalance in supply/demand and landlords taking advantage of limited supply in sought-after locations,” concluded Owen. “Cushman & Wakefield projects that by the end of 2015 robust leasing activity and investment sales will lead to solid rent growth and further declining vacancy.”
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