The main tenant in the building is New York City-based URS Corp., which occupies 61% of the building. The seller, 7800 Congress L.C., was represented by CB Richard Ellis senior vice president Scott O'Donnell and senior associate Dominic Montazemi. O'Donnell and Montazemi were the sole brokers.
O'Donnell tells GlobeSt.com that the seller was an entity comprised of three locally based partners. "The property was being sold because the partners are looking to diversify their assets outside of Florida," he says.
O'Donnell adds the buyer was attracted to the acquisition because of its solid tenancy, and because for-sale office assets are hard to find in Boca Raton. The buyer is planning to stabilize the property and hold it long term. "Boca Raton is considered one of the premier submarkets in Palm Beach County," he says.
O'Donnell says there were a few aspects of the deal that made it challenging. First, negotiations for the property began during the credit crunch last year. "REM Management was one of the few potential buyers that was not looking to finance the deal through a conduit-based lender," he says. "Also, URS has options to expand or contract in the building under its lease terms."
According to a CB Richard Ellis Q4 Palm Beach County office market report, the Boca Raton class A office market was experiencing a 12.8% vacancy rate at the end of the year with 47,426 sf of negative absorption year-to-date and average asking rental rates of $21.05 per sf.
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