Executive Airport Business Center in Fort Lauderdale sold for a relatively modest 10 percent discount to its foreclosed mortgage.
J. Brett Houston, broker and principal with Miami-based Resource Real Estate Group, served as the broker for the seller. He was also the receiver for the property after it fell into foreclosure.
The deal involved a leasehold interest in 76,273 square feet of offices at 801 N.W. 50th St. (West Commercial Boulevard). The site is leased from the city of Fort Lauderdale.
A commercial mortgage-backed securities (CMBS) trust seized the leasehold interest in the property in January after foreclosing on a $3.8 million mortgage with Executive Airport Associates.
Houston said it was sold for $3.41 million to an affiliate of Coral Gables-based KAS Partners. The property is 62 percent occupied, he added.
“A land lease asset always limits the pool of potential buyers but with a remaining (lease) term of only 19 years, the pool of potential buyers was incredibly shallow for this property,” Houston said in a news release. “We identified two pools of buyers. The first group consisted of adjacent commercial property owners that also held land leases with the city of Fort Lauderdale. The second pool consisted of very sophisticated, proven buyers that could get their arms around the land lease situation, and KAS Partners fit this description.”
CBRE brokers Scott O’Donnell and Marty Busekrus represented KAS Partners in the deal.
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