Scott O’Donnell, Dominic Montazemi, Mike Davis, Greg Miller, Rick Brugge and Michael Lerner Negotiated the $42.05 Million Disposition on Behalf of RAIT Financial Trust. Jason Hochman Secured a $28.6 Million Acquisition Loan for the Buyer, PEBB Enterprises.
BOCA RATON, FL, June 19, 2018 — Cushman & Wakefield has negotiated the sale and financing of ADT Inc.’s 171,489-square-foot global headquarters at 1501 Yamato Road in Palm Beach County.
The Cushman & Wakefield Capital Markets team of Scott O’Donnell, Dominic Montazemi, Mike Davis, Greg Miller, Rick Brugge and Michael Lerner negotiated the sale on behalf of Philadelphia-based RAIT Financial Trust. In a joint venture partnership, Boca Raton-based PEBB Enterprises and Chicago-based Tortoise Properties, LLC acquired the asset for $42.05 million ($245 per square foot).
Jason Hochman, of Cushman & Wakefield’s Equity, Debt & Structured Finance Group, assisted the PEBB/Tortoise team in securing a $28.6 million, non-recourse acquisition loan with a low interest rate and flexible prepayment terms.
1501 Yamato Road was developed in 1983 on a ±10-acre site in southeast Palm Beach County. The Class A office building, which features a skylit atrium, water feature, porte cochère, golf course views and a structured parking garage, was completely renovated in 2011 before ADT Took occupancy. 1501 Yamato Road is fully leased by ADT.
ADT is a leading provider of security and automation solutions for homes and businesses in the United States and Canada. ADT is headquartered in Boca Raton and employs approximately 17,500 people in the United States and Canada.
“1501 Yamato Road represented an attractive opportunity for an investor to acquire the most prominent asset along the Yamato Road corridor with predictable and secure cash flows driven by a premier credit tenant,” said O’Donnell.
The building is located within The Park at Broken Sound, a 700-acre, mixed-use park considered by many to be the next major live-work-play destination in South Florida. Superior highway access, demographics and executive housing options make this location highly desirable among investors, tenants and residents alike.
“With over 1,300 multi-family residential units and a new retail center, The Park at Broken Sound is transforming into a live-work-play destination,” said O’Donnell. “This new development at The Park at Broken Sound will enhance the value of the property over time.”
“The PEBB/Tortoise partnership makes for the perfect buyer given PEBB’s understanding of the North Boca Raton market and in-house leasing and management capabilities along with Tortoise’s deep investment expertise and capital,” said O’Donnell.
“The loan we procured allows PEBB to enjoy long-term cash flows while providing proper flexibility needed for a single-tenant building,” added Hochman. “PEBB’s Rob Truett and Ian Weiner were outstanding to work with.”
The South Florida Commercial Team of O’Donnell, Montazemi, Miguel Alcivar, Miller and Hochman has closed over $1 billion in sales and financing over the last two years. Please visit www.southfloridacommercialteam.com for more information about the team.
About Cushman & Wakefield
Cushman & Wakefield is a leading global real estate services firm that delivers exceptional value by putting ideas into action for real estate occupiers and owners. Cushman & Wakefield is among the largest real estate services firms with 48,000 employees in approximately 400 offices and 70 countries. In 2017, the firm had revenue of $6.9 billion across core services of property, facilities and project management, leasing, capital markets, advisory and other services. To learn more, visit www.cushmanwakefield.com or follow @CushWake on Twitter.
About RAIT Financial Trust
RAIT Financial Trust (OTCQB: RASF) is an internally-managed real estate investment trust (“REIT”) focused on managing a portfolio of commercial real estate (CRE) loans and properties. RAIT was formed in August 1997 and commenced operations in January 1998. Today, RAIT utilizes its in-house commercial real estate asset management platform to manage and service a portfolio of commercial real estate assets totaling more than $1.5 billion. The loan portfolio RAIT manages was previously originated by RAIT and is secured by diverse property types, including apartment, office and light-industrial properties and neighborhood retail centers.
About PEBB Enterprises
PEBB Enterprises’ entrepreneurial spirit traces its roots back to 1973, when the family-owned company was founded in South Florida. A full-service private equity real estate investment company, we have continued to operate as a family-owned business for over four decades and take enormous pride in our team of forward thinking associates and entrepreneurial minds who continue to push and expand the company’s growth on a daily basis. PEBB’s driving force is the acquisition and development of high-quality neighborhood, regional and power shopping centers and suburban office buildings. Our diverse collection of tenants enjoy a mutual success while reflecting a balance of local, regional and national retailers. Our shopping destinations are a testament to the kind of business relationships and synergy PEBB strives to foster.
About Tortoise Properties, LLC
Tortoise Properties, LLC is a real estate company focused on residential and commercial properties in select markets in the US. We have developed a strategic and methodical plan to build a premier portfolio of solid and safe places to live and work. Our goal is to become one of the nation’s leading and most successful real estate investment firms. Since 1989, Jake has been a professional real estate leader. Tortoise Properties is a principal and, as such, our funds are immediately available. We are able to make timely decisions and close deals quickly, following an efficient and accelerated due diligence period. We will be focused on economic conditions and demographic data in certain markets where we believe we will be successful owning residential real estate (primarily apartments and for-rent properties) and commercial real estate (primarily office buildings and mixed-use developments) in the long term.
ADT Building Photo
Scott O’Donnell Headshot
Dominic Montazemi Headshot
Mike Davis Headshot
Greg Miller Headshot
Jason Hochman Headshot
Rick Brugge Headshot
Michael Lerner Headshot