CP Group JV Picks Up Boca Raton Landmark
Blackstone provided acquisition financing in a deal arranged by JLL.
The partnership of CP Group, The Georgetown Co. and ACRE has acquired Mizner Park, an 838,840-square-foot mixed-use property in downtown Boca Raton, Fla. StepStone is the joint venture’s investment partner.
JLL represented the seller, BGRE, formerly known as Brookfield Properties, and also arranged financing from Blackstone.
Mizner Park includes 268,391 square feet of office space, 276,461 square feet of retail space and 272 apartments. The property is subject to a ground lease held by the Boca Raton Community Redevelopment Agency, expiring in 2088, Yardi Matrix data shows. The city agency transferred the leases to the new ownership.
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The transaction marks CP Group’s return to the Mizner Park property. Formerly known as Crocker Partners, the company originally developed the campus between 1991 and 1999, as one of the first mixed-use projects in the U.S.
Designed in the Mediterranean Revival style, the complex helped shape the city’s downtown area into a walkable district with high-street stores, restaurants, offices and luxury residences, while also including arts and cultural venues. The property is close to State Road 798 and Federal Highway, both serving as primary arteries connecting the city to Miami to the south and to West Palm Beach, Fla., to the north.
Close-up on Mizner Park
For more than three decades, Mizner Park has served as a luxury landmark and a commercial and community hub for Boca Raton. The campus was named after Addison Mizner, the architect behind the visual identity of the city.
The campus’ largest office property is Mizner Park Tower, a seven-story building at 225 NE Mizner Blvd. Measuring 166,389 square feet, the Class A property came online in 1996 and features 26,757-square-foot floorplates, 10,000 square feet of ground-floor retail space and 626 parking spots.
The second office building within the mixed-use complex is Mizner Park Plaza, totaling 96,716 square feet. Rising three stories at 327 Plaza Real, the 1991-completed property has 25,000-square-foot floorplates, 553 parking spots and 35,240 square feet of first-floor retail space.
The campus’ retail component comprises six one-story buildings, while its residential space includes five eight-story structures with one- to three-bedroom units and a penthouse collection. The broader area also features the Boca Raton Museum of Art and the city-owned Mizner Park Amphitheater.
Going forward, CBRE will oversee office leasing and Newmark will be in charge of retail leasing. CP Group and The Georgetown Co. will be property managers for the office and retail components, while ZRS Management will serve as manager and leasing broker for the residential space.
New ownership, new chapter for Mizner Park
The buyers plan a long-term repositioning program at Mizner Park. Plans call for upgrades of the office spaces and common areas, streetscapes, building exteriors, landscaping, infrastructure, amenities and signage, among others. ACRE will oversee renovations to the multifamily component of Mizner Park, with the renovation strategy targeting interiors and resident amenities.
CBRE Executive Vice President John Criddle, First Vice President Max Pawk and Senior Vice President Joe Freitas and will lead office leasing. Newmark Executive Vice Chairman Ariel Schuster and Managing Director Mitch Heifetz will oversee retail leasing.
JLL Executive Managing Director & Co-Head of JLL U.S. Retail Capital Markets Danny Finkle, together with Senior Director Matt McCormack and Associate Michael Roukis negotiated on behalf of the seller. In addition, Senior Managing Directors Danny Kaufman and Paul Stasaitis, together with Analyst Preston Bacon, arranged acquisition financing.
Mixed-use properties front and center in metro Miami
The Mizner Park transaction adds to a recent string of deals involving mixed-use properties in Miami. The metro is a national leader for live-work-play completions, with 15 such projects completed in the last 10 years
In Boca Raton specifically, Interface Properties paid $40 million for Fountains Center, a 189,542-square-foot property with office, retail and medical office space. Titan Realty Group sold the seven-building campus in June. City National Bank provided an acquisition loan, with proceeds earmarked for improvements.
In Delray Beach, Fla., Pebb Capital obtained $223 million for the refinancing of Sundy Village, a property that includes office, retail and dining space, combining new construction with restored historic homes. The note replaces construction debt and provides funds for tenant improvements.
And further mixed-use development is expected in the Magic City, in conjunction with Carnegie Mellon University’s planned $2 billion Wynwood campus. Ken Griffin bought the site for $1.1 billion, closing the largest land deal in Florida’s history.
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