New Boston Fund, Inc., a private equity real estate investment, development and management firm, announced today that it has sold Waterford Centre in Miami, Florida to Connecticut-based Ivy Realty.
Waterford Centre is a six-story, 91,285-square-foot, Class-A office building located in the Blue Lagoon Business Park at 6205 Blue Lagoon Drive. Built in 1999, Waterford Centre fronts the Dolphin Expressway, immediately across from the Miami International Airport. The building offers excellent access and visibility to the Expressway and tremendous views of the airport. The building also features a five-per-thousand parking ratio, which ranks highest amongst its competitors.
“Having successfully increased property occupancy to over 90 percent, we felt the capital market conditions made this the right time to sell this asset,” said Jon Gillman, Senior Vice President of Asset Management at New Boston Fund. “We’ve seen tremendous enhancement of the property’s value since we acquired it in 2012, due to both the outstanding quality of tenants and the upgraded amenities.”
New Boston Crystal LLC, which is managed by New Boston Fund VII LLC, purchased the asset in June 2012 for $16.25 million, or $125.54 per square foot. The building was approximately 80% occupied at the time of purchase.
New Boston increased the building’s occupancy to 91 percent leased and has been able to maintain a well-diversified mix of national and international tenants there. These include companies such as McAfee (a subsidiary of Intel), Whirlpool Corporation, Travel Traders, Xerox Corporation and Remy Cointreau.
Waterford Centre features reserved/covered parking and state-of-the-art security systems, including card readers, video cameras, visitor tele-entry devices and on-site security guard service. The building’s interior boasts granite, marble and wood finishes in addition to excellent lake views and storage space.
“After making several strong acquisitions in Broward over the past three years, Ivy is very excited to make its entry into Miami-Dade with such a high quality asset,” remarked Roy Rosenbaum, Vice President of Investments for Ivy Realty. “We believe that the property has significant upside and will benefit directly from ongoing growth at Miami International Airport, completion of major renovation work to the 826 / 836 highways and South Florida’s rapidly growing population and employment figures.
Since acquiring Waterford Centre, New Boston has upgraded the lobby furniture and artwork, redesigned the property landscaping, and completed additional improvements to the parking deck.
“New Boston Fund’s strategic purchase of the asset at 78 percent occupancy during the recession in 2012 has paid off,” CBRE Vice Chairman Christian Lee explained. “The company believed in the asset and the market, made judicious capital improvements, and stabilized the rent roll with several high quality tenants. That, along with the fact that market rents have risen considerably over the past year, allowed them to achieve their investment goals in under two years.”
The Miami-based CBRE team representing New Boston Fund included Christian Lee and José Lobón with CBRE’s Capital Markets Institutional Group; and Charles Foschini and Chris Apone with CBRE’s Debt & Structured Finance Group. Assisting the CBRE team was Danet Linares, with Blanca Commercial Real Estate.
New Boston did not disclose the sale price.
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