A Joint Venture of TriGate Capital, Equitable Real Estate Partners and Commercial Florida Realty Partners sold the Five-Building Office Campus to Grover Corlew. Bank United Provided Acquisition Financing.
DEERFIELD BEACH, FL, March 22, 2019 — Cushman & Wakefield has arranged the sale and financing of Hillsboro Center, a five-building, 216,114-square-foot office campus in Broward County.
The Cushman & Wakefield Capital Markets team of Mike Davis, Scott O’Donnell, Dominic Montazemi, Rick Brugge, Greg Miller and Miguel Alcivar negotiated the sale on behalf of a joint venture between TriGate Capital, Equitable Real Estate Partners and Commercial Florida Realty Partners. Grover Corlew, of Pompano Beach, Florida, acquired the buildings for $32.5 million ($150 per square foot).
Hillsboro Center is a value-add office portfolio comprising five buildings developed between 1983 and 1985 on a ±14.02-acre campus at 600 and 700 West Hillsboro Boulevard. The property consists of one, Class A six-story office tower totaling 116,250 square feet (Building V) and four, Class B two-story buildings totaling 99,864 square feet (Buildings I-IV). The campus features a café, on-site banking and a combination of structured and surface parking providing a market-leading parking ratio of 5 spaces per 1,000 square feet.
Buildings I-IV are situated on a ±9.5-acre parcel, which could be redeveloped. The site’s current zoning of B-2 (Highway Business) allows for 206,910 square feet of development at a maximum floor area ratio (FAR) of 0.50. TriGate Capital, Equitable Real Estate Partners and Commercial Florida Realty Partners explored developing an office or retail outparcel fronting West Hillsboro Boulevard and received preliminary approvals for a two-story building up to 20,000 square feet.
Hillsboro Center is ideally located directly east of Interstate 95 at the Hillsboro Boulevard Interchange (Exit 42). This location offers prime frontage along the highly traveled Hillsboro Boulevard corridor. As the closest, multi-tenant office campus to Interstate 95, Hillsboro Center draws tenants from both the Boca Raton and Cypress Creek submarkets, with an office pool of 20 million square feet and a population of nearly 800,000.
Hillsboro Center was 88.3 percent leased at the time of sale. Notable tenants include Dart Container Sales, Complex Clinical Management (a subsidiary of Humana), Smart Procure, Darby Dental Supply and Pylon Manufacturing.
“Hillsboro Center is a unique asset offering unmatched flexibility for its diverse roster of credit tenants,” said Davis. “The combination of asset classes allows ownership to consider the full spectrum of tenants, and provides the flexibility to move tenants between asset classes depending on their business needs. Further, the property can accommodate Class A tenants seeking structured or executive-level parking, as well as back office users with higher-density surface parking requirements.”
“Hillsboro Center is a tremendous long-term investment for us,” said Grover Corlew Partner Mark Corlew, whose group focuses on acquiring, developing and operating office, retail and multi-family properties across the Southeastern U.S. “This high-end complex fits in perfectly with our portfolio of signature office properties.”
TriGate Capital, Equitable Real Estate Partners and Commercial Florida Realty Partners recently completed a $2.7 million renovation program, which included restroom upgrades, entryway improvements, spec suites, parking lot resurfacing, lobby and common area renovations, HVAC replacements, landscaping and site improvements, exterior painting, lighting upgrades, elevator modernizations, new signage and improvements to the on-site café.
“With renovations complete, the full benefits of this major modernization effort can now be realized,” said O’Donnell. “The improvements provide a compelling opportunity for Grover Corlew to push rental rates, which are currently below market.”
“Deerfield Beach’s overall base rents have grown 39 percent since 2011 but are still 38 percent and 28 percent below Boca Raton’s Class A and B base rents, respectively,” added O’Donnell. “Hillsboro Center is the most affordable option in this market, which provides Grover Corlew plenty of runway to increase rents in the future.”
“We were able to secure long-term, fixed-rate bank loan with significant future funding to set up our client to execute their value-add business plan,“ said Hochman.
About Cushman & Wakefield
Cushman & Wakefield (NYSE: CWK) is a leading global real estate services firm that delivers exceptional value for real estate occupiers and owners. Cushman & Wakefield is among the largest real estate services firms with approximately 51,000 employees in 400 offices and 70 countries. In 2018, the firm had revenue of $8.2 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.