Steelbridge Capital, a Miami and Chicago based value focused real estate investor, completed the acquisition of Cypress Financial Center, an 11-story, 198,528 square foot Class A office building prominently situated on I-95 at Cypress Creek Road in Ft. Lauderdale.
The asset sold for $32.55 million.
This acquisition represents a key indicator that investor demand in this prominent in-fill suburban market is robust and follows on the heels of three other notable institutional sales in the same market during the past year. Steelbridge principals were part of the prior ownership from 1998 thru 2006, and were able to now buy the asset back from the owner it had sold the property to in 2006.
Steelbridge Capital plans to commence an extensive repositioning of the asset and will immediately implement an aggressive capital improvement and leasing plan that will once again return it to its Class A+ status, unparalleled in the submarket. Kravit Architectural Associates has been retained to lead the design of the upgrades with anticipated changes including lobby renovations, common area upgrades, exterior painting, native Florida landscaping, and a complete elevator modernization.
“Cypress Financial Center has long been considered the best asset in the market, and through our multi-million dollar capital improvement plan and active management, we will ensure that the building accurately reflects this iconic stature – both inside and out,” said Jay Caplin, Managing Principal, Steelbridge Capital.
Cypress Financial Center is a strong fit for Steelbridge Capital’s investment criteria and presented the team with an opportunity to acquire an infill office asset at a substantial discount to replacement cost. This transaction comes on the heels of another recent Steelbridge value-add purchase of the SunTrust Building, the largest office purchase in Naples in 2014.
“We were able to buy the building at a significant discount to replacement cost and below the price we paid for it in 1998” said Gavin Campbell, Managing Principal, Steelbridge Capital. “When the opportunity to again acquire this asset at an attractive basis presented itself, we acted quickly.”
The only building in the tri-county area situated directly on I-95 with direct expressway access, Cypress Financial Center is currently 76 percent occupied by a prominent roster of national tenants including MetLife, TD Bank, BDO, Altadis and Marcus & Millichap.
“Tenants are drawn to the building because of its contemporary design and visibility standing at 11-stories, prominent signage, central location in South Florida and unique 4/1,000 structured parking,” said Michael Manno, Managing Principal with Steelbridge Real Estate Services, the property management company for Cypress Financial Center.
An HFF investment sales team represented the seller Tricony CFC, LLC in the transaction, led by senior managing director Hermen Rodriguez, director Ike Ojala and associate director Jorge Portela.
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