MIAMI—Property Group Partners, formerly Louis Dreyfus Property Group, just snapped up 324 Royal Palm Way, a 25,000-square-foot luxury office building in Palm Beach, FL. The $18 million acquisition expands the firm's South Florida footprint.
Cushman & Wakefield director Mark Pateman and associate director Tara England represented the buyer in the transaction. Palm Beach-based Armata Holdings was the seller.
“This was a classic relationship transaction,” Pateman, who along with England managed the building's leasing for Armata prior to the sale, tells GlobeSt.com. “While Armata was not actively shopping the deal, we knew they were willing and we were able to present an actionable offer.”
Also known as the U.S. Bank Building, 324 Royal Palm Way is a fully leased, multi-tenant office building centrally located on the renowned Bankers Row, a colloquial reference to the high density of financial institutions along this stretch of road. The three-story office building was built in 1960 and sits just blocks from the restaurants and shops of world famous Worth Avenue and South County Road.
“We have a great relationship with the buyer,” says Pateman. "They are long-term holders and love supply constrained markets, so it was a perfect fit.”
The office building underwent a comprehensive exterior and interior renovation program in 2010. These renovations included a new common kitchen, new second-floor bathrooms, and updated elevator lobbies. The building also offers covered parking, surface parking, and an on-site ATM. According to CushWake Research, the Palm Beach office market is supply constrained.
“The positive fundamentals for the Palm Beach office market are growing each quarter,” wrote senior research analyst Lauren Pace in the firm's Q2 2015 Palm Beach County Office Marketbeat Report. “While quality available office space remains limited in the market, tenant demand remains high with product becoming scarce.”
“Rents are trending higher due to an imbalance in supply and demand and landlords are taking advantage of limited supply in sought-after locations,” Pace wrote. “Cushman & Wakefield projects that by the end of 2015 robust leasing activity and investment sales will lead to solid rent growth and further declining vacancy.”
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
