Posted on February 26, 2019 · Posted in Industrial / Flex, Investments, Office

Broward County Office Park Fetches $29.25 Million

Cushman & Wakefield has arranged the sale of Lakeshore Business Center, a four-building office park in Broward County’s Cypress Creek submarket.

The Cushman & Wakefield Capital Markets team of Mike DavisScott O’DonnellDominic MontazemiGreg MillerRick Brugge and Michael Lerner represented Boca Raton, FL-based Morning Calm Management in the sale.

Miami-based YMP Real Estate Management, LLC acquired the 237,682-square-foot office park for $29.25 million, which equates to approximately $123 per square foot.

Lakeshore Business Center comprises four, two-story buildings developed between 1986 and 2000. The campus is located on a ±17.0-acre site at 5100 and 5200 NW 33rd Avenue and 3201–3125 West Commercial Boulevard in Fort Lauderdale.

The park’s location midway between Interstate 95 and Florida’s Turnpike — South Florida’s two primary north-south arteries — offers nearly one-quarter mile of prominent frontage along West Commercial Boulevard in the Cypress Creek submarket.

“Cypress Creek is Broward County’s second-largest submarket and continues to be a cost effective option for tenants who are seeking easy access to South Florida’s major thoroughfares and a respite from the Fort Lauderdale CBD’s rapidly rising rents,” explained Davis. “As average asking rents in Fort Lauderdale’s CBD increase, the relative value appeal of Cypress Creek as a cost-effective option for Class A and B office space continues to grow.”

Lakeshore Business Center offers a superior parking ratio (4.0 spaces/1,000 square feet) and has received more than $1.3M in capital improvements in recent years, including high-quality interior finishes; upgrades to roofs, HVAC, lobbies and corridors; and major restroom renovations.

Further improvement and development potential is possible for new ownership. Sixteen percent of Lakeshore Business Center’s total square footage is warehouse space, which could be repurposed to office. The site also offers near-term outparcel development opportunities and the potential for a covered land play, leading to future redevelopment.

Lakeshore Business Center was 79% leased at the time of sale, with leasing velocity increasing dramatically in recent years. Notable tenants include Hair Visions International, ECI Telecom and Kirlin Florida.

“Lakeshore Business Center provides YMP with tremendous upside potential through the lease-up of 50,000 square feet of vacant space,” said O’Donnell. “Prior ownership had leased 78,000 square feet of new space plus 58,000 square feet of renewals in the past three years, which made up 44% of the entire submarket’s absorption during that period.”

Executive Airport Business Center In Fort Lauderdale Sells For  $5.5 Million

Marcus & Millichap Senior Managing Director and Institutional Property Advisors (IPA) senior director Douglas K. Mandel, along with Marcus & Millichap Associate Tyler Kuhlman, represented the Seller, TCPH Broward, LLC, and Buyer in the sale of Executive Airport Business Center (EABC), a 73,289-square-foot, two-building office/industrial facility located adjacent to the Fort Lauderdale Executive Airport at 5101 NW 21st Avenue in Fort Lauderdale.

FXE Business Center, LLC, an affiliate of Adler Group, LLC, purchased the property for $5,500,000. The deal closed February 4.

The property was constructed in 1987 and is situated on a six-acre, leasehold site with 35 years of term remaining. The landlord is the City of Fort Lauderdale.

“With stabilized occupancy of 87 percent, EABC, the Buyer is able to immediately enjoy steady cash flows of a diverse rent roll boasting nationally accredited companies that have been long term tenants,” commented Mandel.

 

Source: CRE-sources

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