Cushman & Wakefield announced that it has brokered the sale of Grove Centre, a 52,253-square-foot office building located at 21301 Powerline Road.
The capital markets team of Executive Director Scott O’Donnell, Senior Director Dominic Montazemi, Director Miguel Alcivar, Senior Associate Greg Miller and Senior Director Jason Hochman represented the seller, SF Partners. The buyer, TJAC Development, was represented by Ayal Frist of Stateland Brown.
The transaction was valued at $11.5 million, or $220 per square feet.
Grove Centre is a three-story building constructed in 1983 on a ±3.5-acre parcel. TJAC Development plans to build a retail strip center on that parcels south side, which is currently utilized for overflow parking. The building was 86.1 percent occupied at the time of sale. Notable tenants include C3TS/Stantec, Sequoia Insurance & Financial, Inc., Freedman & Spoont, P.A. and Weisberg & Associates.
“SF Partners nearly doubled the price they paid in 2013 through a successful repositioning program,” said O’Donnell. “This is a very unique asset whose value was also driven by the opportunity to develop retail on the site.”
“We’re seeing tremendous momentum in the South Florida market and investors are taking notice,” said Montazemi.
According to Cushman & Wakefield research, the Palm Beach office market continues to exhibit positive fundamentals and remains a target for users and investors alike.
“The Palm Beach County office market continued to gain velocity as leasing activity totaled 1.7 million square feet year-to-date, a 38.4 percent increase year-over-year,” wrote Senior Research Analyst Valerie Tatum in the firm’s Q4 2015 Palm Beach County Office MarketBeat report. “Much of the leasing activity is due to organic growth as companies work to ‘right size’ their teams after a period of downsizing. The move towards stabilization has allowed the market to absorb 419,888 square feet during in 2015, continuing a seven-year streak of positive annual absorption.”
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