JP Morgan acquired the buildings two years ago and has since increased rental rates and completed capital improvements including new roofing and interior upgrades. Multiple offers were received for the class A suburban buildings as a portfolio and individually, according to Hermen Rodríguez, a managing director with Holliday Fenoglio Fowler LP, which represented the seller in the transaction.
"The underlying fundamentals of the West Palm Beach market, which has continued population growth and very little new office development, continues to attract institutional interest for office assets." Rodriguez says. Executive managing director Manny de Zárraga, director Ike Ojala and associate director Luis Castillo of HFF also assisted in the deal, with TA Realty representing itself.
"TA has made a significant investment in West Palm Beach," says Rodríguez. "Last year, they acquired 400,000 sf at CentrePark and CentrePark West, and purchased this portfolio because they wanted to expand their holdings."
The buildings have at least 90% combined occupancy with limited near-term rollover, he says. Major tenants at Northpoint include CBS Radio Stations and AT&T. At Centurion Tower, significant tenants include Oxbow and Kolter, while Shoes for Crews, STH Architectural Group and HDR Engineering lease at 1400 CentrePark. Rental rates range from $16 to $19 triple net, says Rodríguez. According to the latest CBRE market report, average class A rental rates in the West Palm Beach market are at $24.91, with an overall vacancy rate of 18.5%.
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