Office Tower Commands $82M in Downtown Ft. Lauderdale
- Oct 27, 2017
CBRE arranged the sale and financing of a Class A office tower totaling 226,376 square feet in downtown Fort Lauderdale, Fla. TA Realty sold the asset in an $81.5 million deal to a joint venture between Banyan Street Capital and Oaktree Capital Management, public records show. Metropolitan Life Insurance Co. originated $55.5 million in acquisition financing, scheduled to mature in 2027.
Located at 200 E. Broward Blvd., the 21-story building was completed in 1992 and recently underwent a $5.7 million capital improvement program including a lobby renovation in 2016. The property, known as 200 West Broward, features a conference center, 24/7 on-site concierge service, full-service banking, café dining, car wash and shuttle services. 200 West Broward is leased to a diversified roster of 22 tenants and offers 6.6 years of the weighted average remaining lease term.
CBRE Capital Markets Vice Chairman Christian Lee oversaw the transaction alongside Senior Vice President José Lobón on the sale and Vice President Amy Julian on the financing. The CBRE Capital Markets team representing the seller also included Financial Analysts Andrew Chilgren and Tyler Ploshnick.
“Since the seller acquired the property in 2014, rents at 200 East Broward have grown an impressive 43 percent,” said Lobón, in prepared remarks. “However, despite the building’s 95 percent occupancy, 47 percent rent growth among the competitive set since 2011 has resulted in average contract rents that are 39 percent below market rates, thus offering significant upside potential as leases roll.”
“The loan with MetLife will provide additional funding for the continued modernization of the building common areas. These enhancements, combined with Banyan Street’s commitment to the property, will undoubtedly strengthen 200 East Broward’s position in the market,” explained Julian, who is on CBRE’s debt and structured finance team.
The office tower boasts expansive views of the Intracoastal Waterway, the Atlantic Ocean and Fort Lauderdale’s cityscape. Tenants enjoy access to fine dining, shops, museums and the Fort Lauderdale International Airport. Collier’s leasing team of Executive Vice President Jonathan Kingsley and Senior Vice President Jarred Goodstein, alongside Senior Property Manager Keeley O’Leary, assisted the CBRE team in marketing the property.
Image courtesy of Yardi Matrix