The Capital Markets Team of Scott O’Donnell, Dominic Montazemi, Greg Miller, Miguel Alcivar and Jason Hochman Negotiated the Sale on Behalf of the Seller
DELRAY BEACH, FL, September 24, 2018 — Cushman & Wakefield has negotiated the sale of Congress Office Park, a 54,006-square-foot office building in Palm Beach County.
The Cushman & Wakefield Capital Markets team of Scott O’Donnell, Dominic Montazemi, Greg Miller, Miguel Alcivar and Jason Hochman negotiated the sale on behalf of ICM Realty Group. Coral Springs, FL-based TMT Properties, Inc. acquired the asset for $11.4 million ($211 per square foot).
Congress Office Park is a three-story, suburban office building developed in 1985 on a ±3.8-acre site. The building features below-grade executive parking, ample surface parking, outdoor patio seating and lake and golf course views.
The recently renovated office building was 100% leased at the time of sale. Notable tenants included WMPH Vacations, Specialized Healthcare and Capital Confirmation. The Cushman & Wakefield office leasing team of John Criddle and Joseph Freitas represented ICM Realty Group in bringing the building to full occupancy.
“The lease-up of Congress Office Park was driven by the building’s exceptional access to Interstate 95 and local amenities, the unique availability of below-building parking and tenants’ desire to locate their operations within the thriving Delray Beach market,” said Criddle.
Congress Office Park’s location at 220 Congress Park Drive in southeast Palm Beach County offers easy access to Interstate 95 as well as downtown Delray Beach, downtown Boca Raton and the Palm Beach and Fort Lauderdale International Airports. The building is a short walk from the Delray Beach Tri-Rail and Amtrak station and surrounded by newly developed multifamily communities.
“With 220 Congress at stabilized occupancy levels, albeit at below-market rents, new ownership can expect steady and growing cash flows from a diverse mix of tenants, and value appreciation as the submarket continues to improve and rental rate growth accelerates,” said Montazemi.
The Cushman & Wakefield team has now negotiated the sale of Congress Office Park three times in the past six years, achieving significant growth in value each time. The property traded for $4.3 million ($79 per square foot) in 2012 at 50% occupancy after being foreclosed upon by Wells Fargo Bank. In 2014, ICM Realty Group acquired the asset for $8.0 million ($148 per square foot) at 83% occupancy.
“Throughout our extensive experience at 220 Congress, we’ve witnessed more than 60% rent growth and increasing confidence in the capital markets for suburban office assets given the lack of new supply,” added O’Donnell.
The South Florida Commercial Team of O’Donnell, Montazemi, 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 (NYSE: CWK) 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, valuation and other services. To learn more, visit www.cushmanwakefield.com or follow @CushWake on Twitter.
About ICM Realty Group
Founded in 2003, ICM Group is a fully integrated international real estate investment firm that focuses on the US and Canadian commercial real estate markets. From its offices in Calgary, Atlanta, San Francisco, Minneapolis and Munich, ICM’s core objective is to provide institutional and high net worth investors with customized services in the areas of Investment Management, Asset/Portfolio Management, and International Investment Solutions. ICM has a proven track record with all investment-property types and has extensive experience in structuring and managing cross-border investment vehicles, including, real estate investment funds, private placements, and real estate syndications. Visit www.icmgroup.ca for more information.