PALM BEACH, FL-GenSpring Family Offices inked 10-year lease at its new corporate headquarters. The subsidiary of SunTrust Bank that specializes in wealth management for high net worth individuals will take up the entire 35,324-square-foot Riverwalk Center on U.S. 1 in Jupiter.
Mark Montgomery, senior vice president in the Jacksonville office of CNL Commercial Real Estate, represented GenSpring Family in the deal. Anthony Librizzi, a vice president at CB Richard Ellis, represented the Riverwalk Center, a joint venture between Tower Realty Partners sand The Praedium Funds.
“Mark has represented our team in several markets throughout the state of Florida,” said Kevin Pomet, first vice president of SunTrust Corporate Real Estate. “After he identified several viable options for us, we ultimately elected to extend our lease at the current facility and expand into the entire building.”
Before the transaction, GenSpring Family split its corporate functions between two offices, one in Palm Beach Gardens and one on a floor of the Riverwalk Center. GenSpring decided to consolidate office and lease two additional floors in the Riverwalk Center.
“This was an unusual deal because there were tenants in place in the building,” Montgomery tells GlobeSt.com. “Some of the tenants were coming close to their lease expirations. Others closed their offices. The property owners actually had to get the first floor rezoned for office to make the deal work. There were a lot of moving parts.”
The GenSpring deal is fruit of a rebounding Palm Beach office market. In the fourth quarter of 2010, the market showed an impressive net absorption gain of 118,000 square feet, according to Grubb & Ellis. The quarterly figure brought the full year tally for the market into positive territory—the first time since 2006—to 86,000 square feet. As a result, vacancy dropped 50 basis points from the third quarter to end the year at 23.3%.”
“There aren’t a lot of class A buildings in Jupiter,” Montgomery says. This is probably the nicest building the market. I’m seeing some consolidation here, but there’s also some expansion. It’s a mixed review.”
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