A South Florida office tower is set for refinancing after the building’s joint venture secured a $96 million loan.
Northbridge Centre’s JV ownership includes Vanderbilt Office Properties and Trinity Capital Advisors. The property at 515 North Flager in West Palm Beach spans 294,493 square feet, with 21 stories.
BMO originated the loan, while CBRE secured the refinancing for the JV.
Recently, the JV poured more than $18 million into renovating the office tower. This includes making improvements to the elevator, lobby, multi-tenant floors, and enhancements to the exterior of the building. Plus, it also invested in speculative suite buildouts.
Separately, tenants get perks including a rooftop amenity deck, full-service banking, executive valet parking, three dining venues in the space, a salon, a conference facility, and a fitness center. Also, various monuments can be viewed from the building including Clear Lake, the intracostal waterway, the Atlantic Ocean, Palm Beach Island, and the skyline of West Palm Beach.
Since 2022, Northbridge Centre has enjoyed 88,000 square feet of new leases, leading to rents spiking by 46 percent since the office tower was first acquired in 2019, according to CBRE. Currently, 48 tenants have leases – with Northbridge Centre 92 percent occupied.
Andrew Chilgren, first vice president of CBRE’s Miami-based institutional properties team, touted some of the fundamentals of the area.
“New-to-market leasing activity has led to West Palm Beach emerging as one of the nation’s top performing submarkets,” he said.
“Since the end of 2020, Class A vacancy has dropped 900 basis points to just 9.8%, while rents have simultaneously increased by more than 50%.”
Since 2014, Vanderbilt has invested $5.3 billion in more than 35 transactions, according to the office operator. Plus, the Chicago-based firm manages 15.5 million square feet over 11 markets.