CBRE Group, Inc. has arranged the sale and financing of West Palm Beach’s institutional business park, Centrepark, for $72 million.
Located adjacent to both I-95 and Palm Beach International Airport, the 479,145-square-foot asset consists of nine buildings constructed between 1988–2004, including one Class A 10-story building, three low-rise buildings and five single-story buildings. Colonnade Properties and affiliates of Grace Development and Flagler Realty acquired the property from Centrepark East Holdings and Centrepark West, both managed by J.P. Morgan Asset Management.
CBRE Capital Markets’ Debt & Structured Finance team arranged two separate loans for the acquisition. Rialto provided 10-year, fixed rate debt for the 5 buildings east of Australian Avenue while NXT provided short-term, floating rate debt for the 4 buildings west of Australian Avenue. The CBRE South Florida Capital Markets team of Christian Lee, Vice Chairman; José Lobón, Senior Vice President; Amy Julian, Vice President; and Marcos Minaya, Financial Analyst represented the Seller.
“Through the lease-up of 85,953 square feet of available space and a projected market rent growth of 27 percent over the next five years, the property offers a tremendous upside opportunity for the buyer,” said Christian Lee, Vice Chairman, CBRE Capital Markets. “All nine buildings are in excellent physical condition, the property is strategically located and offers a competitive parking ratio of 4.3 per 1,000 – these factors combined will allow Centrepark to continue to attract new tenants.”
Situated within a 41-acre mixed-use corporate park, Centrepark is 82 percent occupied by a diversified roster of 64 tenants, including Ocwen Financial, SV Microwave, Conroy Simberg, Seacrest Services and Earthlink.
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