The tenant took the premium quarters on a 10-year lease with an estimated value of $3.8 million to $5.5 million.
Class A product on Royal Palm Way, the blue-ribbon central business district, is virtually non-existent in this millionaire's enclave 69 miles north of Downtown Miami. Asking rents are $38 per sf to $55 per sf.
"Space (in the submarket) is typically built out with significant upgrades," Chris Constant, a Cushman & Wakefield associate director, tells GlobeSt.com. He represented Citigroup in partnership with C&W senior director Jim Cahlin.
"Most of the tenants' clientele are high-worth individuals, so the tenants build out their space with much nicer upgrades than you expect from a typical office tenant, " Constant says.
When first contacted by Citigroup, Constant and Cahlin couldn't find what Citigroup Bank needed.
"It's not only the (growth) limit on new development, but there is just no physical space for new development," Constant says. "We're talking about locating on one street, not even a mile long, that is lined with small boutique builders on both sides."
Ultimately, Cahlin and Constant found a receptive property owner in FJK Teejay Inc., which owns the 10,000-sf building at 241 Royal Palm Way which Citigroup leased. The owner persuaded the existing tenant, Workflow Management Inc., to relocate.
"The tenant had just signed a 10-year lease last year," Constant says. Citigroup Private Bank is a business name used by various members of Citigroup, including New York-based Citibank.
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