Prime US REIT has spent $99.5 million to acquire One Town Center, a 191,294-square-foot Class A office building in Boca Raton, Fla. CP Group—formerly known as Crocker Partners— and Siguler Guff & Co. sold the asset. KBS acted as the U.S.-based asset manager on behalf of the buyer.
Vice Chairman Chris Lee and Executive Vice President Jose Lobon of CBRE brokered the transaction. According to CommercialEdge data, the property last traded at the end of 2014 for $44.7 million. In June, CP Group together with Rialto Capital Management and Sabal Capital Partners acquired a 1 million-square-foot office building in downtown Miami.
CP Group has been retained as the on-site property manager for One Town Center. Located at 1 Town Center Road, the 10-story building is a little more than a mile from Interstate 95, 3 miles from the Florida turnpike and close to some 2.1 million square feet of retail and dining choices. Completed in 1991, the property underwent cosmetic renovations in both 2013 and 2020. The asset includes an adjacent 435-space parking garage and 274 surface parking spaces, while common-area amenities consist of a restaurant, a fitness center and upgraded landscaping.
Building upgrades for a growing market
KBS plans to implement upgrades to the property, including a lobby refresh, restroom renovations, front-entry enhancements, while also updating the fitness center and locker rooms, building out a management office, as well as bring vacant suites up to spec suite condition. The property is 95 percent leased to a tenant roster that includes local offices of Bank of America, SunTrust and National Life Group, CommercialEdge data shows.
DeLuca stated that Palm Beach County has experienced a higher-than-normal influx of new residents due to the pandemic and Boca Raton has become one of the most attractive markets for wealthy decision-makers. The metro’s appeal includes its climate and lifestyle, lower taxes and relative affordability. The Boca Raton’s office market also has high barriers to entry due to prohibitive construction costs. Moreover, no new office buildings are currently under construction.