Five-Building Office Complex In West Palm Sells
Northeastern investors continue to move their capital to the West Palm Beach office market.
Colliers recently brokered the $6.95 million sale of Plaza 1551 located at 1551 Forum Place in West Palm Beach.
The transaction closed on May 11.
Executive Managing Director Mark M. Rubin and Director Bastian Laggerbauer of Colliers’ South Florida Investment Services Team in collaboration with Executive Managing Director Michael Falk represented the seller, Forum Place Investments, LLC. Mitchell Adelstein from Capstone Realty Group was the buyer.
“This sale is indicative of the current market, illustrating the continued surge in office sales volume in Palm Beach County over the past year. The buyer being from the northeast continues the trend of more capital moving to South Florida,” said Rubin.
“This purchase was a good fit for the buyer to further expand and diversify their portfolio in the Palm Beach Lakes Corridor market,” added Laggerbauer.
The highly sought-after Class B office complex is approximately 91% occupied by 10 tenants including Phipps Reporting, Labor for Hire, Richard S. Bernstein & Associates, Ibero Property, and more. The 39,072 square-foot five-building office complex is situated on approximately 4 acres. The site offers convenient access to local lodging, hospitals, the Palm Beach Outlet Mall, the Palm Beach International Airport, Downtown West Palm Beach and many other amenities. Tenants enjoy a lushly landscaped courtyard, upgraded common areas, monument signage, and ample parking in a clean and quaint office park setting.
“The property is an interesting purchase as Colliers represented the original acquisition when the owner sought an off-market opportunity, now once again the team provided an excellent return on the investment,” said Falk. “The direct access and single-story construction were important selling points, at the same time, its size and location provide excellent value-add opportunities for the future.“
Palm Beach County became one of the nation’s most attractive office markets in 2021, drawing new-to-market tenants with a growing skilled population, the forthcoming return to the office, and significant business and economic incentives among many other factors. Investors became attracted to Palm Beach County’s safe and stable market. The in-migration of companies presented investors with the opportunity to acquire product and raise rents in-line with the increasing demand seen in the record-setting sales activity for the year. In 2021, Palm Beach County’s office sales volume increased almost three times that of 2020, reaching $2.2 billion with a total of 91 transactions, almost double the number of transactions in 2020. The City of West Palm Beach saw even larger increases, reaching a sales volume of $822 million across 30 deals in 2021, up from $66 million across 10 deals in 2020.
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