Commercial mortgage special servicer LNR Partners, LLC (“LNR”) has closed on the disposition of 950 Peninsula Corporate Circle, a 45,803 square foot office building situated on 2.7+/- acres at Peninsula Corporate Center in Boca Raton. Colliers International South Florida brokers Kevin McCarthy and Bastian Laggerbauer represented LNR in the sale, which was conducted in a three-day scheduled auction on Ten-X. The $8.95 million sale price breaks down to nearly $195 per square foot for the buyer, Brandon Rolnick, a New Jersey-based investor.
Built in 2006, the three-story executive suite building offers a unique proposition with newer construction and separately-metered suites, ideal for the conversion to an office condominium. Prior to the sale, John Mitchell of LNR retained Colliers for the Leasing and Management Services of the building, which was acquired through foreclosure during the first half of 2017. Together, Colliers kicked off a expediant effort to optimize the building, including service of its building mechanics, as well as strong leasing activity to increase the NOI and prepare for the sale.
“The unique feature regarding this property is that every unit is self-contained with private bathrooms, and separately metered utilities,” said Colliers International South Florida Senior Vice President Kevin McCarthy. “LNR recognized the appeal for potential investors and did an excellent job working with our team to position this asset for a successful sale.”
Market fundamentals in Palm Beach County strengthened this quarter as the market tightened. As out-of-state investors continue show interest for South Florida, investment activity in Palm Beach County remains elevated relative to neighboring Broward County. Approximately $606 million traded in Palm Beach County year-to-date, a significant 30 percent more trade activity than Broward County, at $466 million year-to-date. Demand for office product stems from a variety of investor types and many new groups actively seeking opportunities in Palm Beach County.
“The opportunity to acquire an income-producing foothold with a reasonable value-add component in a high barrier-to-entry market like this was a huge draw for investors,” added Colliers International South Florida Associate Bastian Laggerbauer. “And the desirability of the property’s location and its future potential really helped LNR achieve a competitive sales process.”
The property at 950 Peninsula Corporate Circle features immediate access to Interstate 95 Interchange in Peninsula Corporate Center. With Florida-functional amenities like hurricane impact glass and a full building backup generator, the building also includes aesthetically pleasing features such as a tropical-landscaped fountain courtyard and glass elevators.