Revised December 10, 2015
CBRE arranged the sale of Commercial Place I and II, a suburban office community with a total of 175,433 rentable square feet on 10.69 acres in Fort Lauderdale.
The asset at 3230-3250 W. Commercial Boulevard was acquired from Divaris Property Management Corp., an entity managed by American General Life Insurance Company, by New England-based Brookwood Financial Partners.
Brookwood paid $23.5 million for the property.
Brookwood plans to enhance the property’s position as the premier Class A property in the Commercial Boulevard submarket by investing $1.2 million in targeted capital improvements. This is in addition to the $800,000 in capital improvements recently completed by the previous owner, which included common area upgrades and the replacement of the HVAC equipment.
“We will continue to build upon their improvements with additional renovations to the common areas, café, conference room and fitness center. We will also be painting the exterior of the buildings and performing elevator upgrades,” stated Thomas W. Brown, Brookwood’s President and Director of Real Estate Acquisitions. “With significant capital at our disposal, we will be able to offer prospective tenants best-in-class amenities at lease rates that are very competitive with Class A office properties in the Fort Lauderdale area.”
Western National Life Insurance Co., an affiliate of AIG, won a $31.3 million foreclosure judgment against Mainstreet AEW V Commercial Place in March, 2012 and took title to the building in late April. In December, 2012, Western National Life Insurance Company merged into its sister company, American General Life Insurance Company.
The Class A property is currently 83.9% occupied. Major tenants include Blue Cross Blue Shield Association, Traveler’s Indemnity, Progressive Corp., Host.net, Atkins Global, and Cisco Systems.
Stiles Realty director Madelayne Garcia, who represented the landlord, inked more than 47,000 square feet of new leases, expansions and renewals at Commercial Place I & II from June 2013 to June 2014, including 15,271 square feet of new leases and renewals totaling 31,808 square feet, with Progressive Casualty Insurance renewing for 21,576 square feet and expanding for another 5,417 square feet. The national insurance provider signed a 64-month lease.
According to Garcia, Progressive’s renewal and expansion at Commercial Place I & II helped to reinforce the property’s broad appeal, showcasing the quality of the buildings and ideal location between Interstate 95 and the Florida Turnpike.
Commercial Place is located in the Commercial Boulevard submarket adjacent to the Fort Lauderdale Executive Airport and along one of the main arteries between Florida’s Turnpike and I-95.
CBRE’s Christian Lee, José A. Lobón, Marcos Minaya, and Nicholas Avalos, together with Charles Foschini and Christopher Apone of CBRE Debt & Structured Finance, collaborated in representing the seller.
According to industry sources, Sandra Andersen with JLL has been retained to lead leasing efforts for the buildings under the new ownership.
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