Along with co-general partner Somerset Properties, Ten Capital Management has acquired Bayview Corporate Tower, a 413,833-square-foot Class A office building at 6451 N. Federal Highway in Fort Lauderdale, Fla. The 12-story property reportedly is Broward County’s largest office building.
The acquisition’s price was not disclosed, but local media reported this as $82.5 million. The seller was Bridge Investment Group, of Salt Lake City, a Ten Capital spokesperson told Commercial Property Executive. Dominic Montazemi, Mike Davis, Scott O’Donnell, Greg Miller, Mike Ciadella, Rick Brugge, Rick Colon and Miguel Alcivar represented the company’s subsidiary, Bridge Office Fund Manager, in the transaction.
Over the last three years, Bayview Corporate Tower underwent a $4.8 million renovation, and it’s currently is 89.2 percent leased to 21 tenants. Amenities include a café, a conference center, a fitness center, an amenity lounge, an outdoor picnic area, and on-site security and management, as well as panoramic views of the Atlantic Ocean and Intracoastal Waterway. Parking in a ratio of 5.0/1,000 square feet is available in an adjacent five-story parking garage.
The building is in Broward County’s Cypress Creek submarket, roughly equidistant between downtown Fort Lauderdale and Boca Raton, and with convenient access to I-95. The area is characterized by a high average household income, a variety of housing options and significant multifamily development.
A market in the balance
The Broward County office market has an overall vacancy of 12.3 percent in Class A space, according to a second-quarter report from Cushman & Wakefield. More than 1.1 million square feet of space is under development, versus a total inventory of 28.2 million square feet; 22 percent of the space underway is preleased.
In the Cypress Creek submarket, overall vacancy is 14.7 percent on an inventory of 6.2 million square feet. Year-to-date absorption was a negative 62,000 square feet, and no additional office space is underway there. The average Class A asking rent is $33.06, again according to Cushman & Wakefield.
In a prepared statement, Paul DiSandro, a Ten Capital partner and portfolio manager, noted that the lack of new office construction, plus CBD tenants seeking more affordable options, should lead to a continued decline in the submarket’s vacancy.
In March, Slate Office REIT agreed to acquire Cypress Financial Center in Fort Lauderdale for $45.5 million. The 201,000-square-foot building is at 5900 N. Andrews Ave., about 3 miles west of Bayview Corporate Tower.