PALM BEACH, FL—Jupiter Medical and Technology Park has a new owner. Jupiter RE Investments, LLC, the real estate holding company affiliated with Florida Turbine Technologies, sold the asset to POH Jupiter Ownership, LLC, of Hollywood, FL. The sale price was $30.7 million.
Jupiter RE, which purchased the property in 2005, made the strategic decision to exit the commercial real estate management arena and reinvest the equity it had invested in real estate into its expanding global business. CBRE arranged the sale and financing of the 185,000-square-foot asset. The property was 92% occupied at the time of the sale, with Jupiter RE occupying 34% of the medical office campus.
“The challenge for us, given a capital market environment where institutional equity is generally focused on CBD assets, was to identify a well-capitalized private equity firm willing to aggressively pursue a stable suburban office asset in a secondary, but burgeoning office/life sciences market,” says Scott O'Donnell, senior vice president with CBRE's Private Capital Group in Boca Raton, who represented the seller. “The well-capitalized private buyer had been targeting larger assets presently deemed 'non-institutional' that will offer a future institutional exit as the capital markets evolve and the Jupiter submarket matures.”
POH secured a $24 million loan. RAIT Financial Trust, a Philadelphia-based REIT and bridge lender, provided the financing.
“This was a challenging deal to finance because there was a large amount of excess land that was not entitled, but potentially had value separate and apart from the building, which was well-leased and producing a strong consistent income,” says Charles Foschini, vice chairman with CBRE's Debt and Equity Finance group. “We needed to secure a flexible lender who would focus on the value of the income property for the loan but also allow the borrower to explore the value of the land at a future date. RAIT's approach was uniquely crafted and allowed for exploration of that business plan.”
Built in 1990 for Marquette Electronics, later acquired by GE Medical Systems (GEMS), Jupiter Medical & Technology Park is a corporate campus-style property on 16 acres. It is located less than one mile from the 283-bed Jupiter Medical Center and within Jupiter's active and growing life sciences hub. The property currently has four tenants, with nearly half of the building still occupied by GEMS, a subsidiary of GE Healthcare, a Fortune 100 company.
The CBRE professionals involved in this transaction included O'Donnell, Dominic Montazemi, and Miguel Alcivar, all with CBRE's Private Capital Group; Christian Lee with CBRE's Capital Markets Institutional Group; Robert Smith, with CBRE industrial/office brokerage team; and Foschini and Jason Hochman, with CBRE's Debt and Equity Finance group.
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