DEEERFIELD BEACH, FL- South Florida real estate investment management group Grover Corlew has acquired the four-building Hillsboro Center office complex here for $32.5.
The Pompano Beach, FL-based company purchased the more than 216,000-square-foot office center for approximately $150-a-square-foot from a joint venture of TriGate Capital, Equitable Real Estate Partners and Commercial Florida Realty Partners. The deal brings Grover Corlew’s commercial real estate portfolio in Florida to approximately 2 million square feet.
Cushman & Wakefield Capital Markets team of Mike Davis, Scott O’Donnell, Dominic Montazemi, Rick Brugge, Greg Miller and Miguel Alcivar negotiated the sale on behalf of the joint venture. Jason Hochman of Cushman & Wakefield’s Equity, Debt & Structured Finance group secured a $24.8-million acquisition loan from Bank United on behalf of Grover Corlew.
Hillsboro Center includes a six-story, 116,250-square-foot. Class A office tower at 600 West Hillsboro Blvd. and four two-story office buildings with 99,851 square feet at 700 West Hillsboro Blvd.
Hillsboro Center was 88.3% leased at the t ime of sale. Notable tenants at the complex include: Dart Container Sales, Complex Clinical Management (a subsidiary of Humana), Smart Procure, Darby Dental Supply and Pylon Manufacturing.
‘We special ize in transforming centrally located suburban office properties into revitalized spaces that meet the needs of today’s businesses,” says Grover Corlew partner Anuj Grover.
“Hillsboro Center is well positioned in a growing area of Deerfield Beach. Our proximity to 1-95, US 1 and the Dixie Highway flyover bridge connecting the city to Boca Raton makes Hillsboro Center a prime, easily accessible location.”
The campus features a cafe, on-site banking and a combination of structured and surface parking providing a parking ratio of five spaces per 1,000 square feet. Buildings I-IV are situated on a more than 9.5-acre parcel, which could be redeveloped. The site’s current zoning of B-2 (H ighway Business) allows for 206,910 square feet of development at a maximum floor area ratio (FAR) of 0.50.
C&W reports that TriGate Capital, Equitable Real Estate Partners and Commercial Florida Realty Partners explored developing an office or retail outparcel fronting West Hillsboro Boulevard and received preliminary approvals for a two-story building up to 20,000 square feet.
The previous ownership recently completed a $2.7-million renovation program, which included restroom upgrades, entryway improvements, spec suites, parking lot resurfacing, lobby and common area renovations, HVAC replacements, landscaping and site improvements, exterior painting, lighting upgrades, elevator modernizations, new signage and improvements to the on-site cafe.
With renovations complete, the fu ll benefits of this major modernization effort can now be realized,” says C&W’s O’Donnell. “The improvements provide a compelling opportunity for Grover Corlew to push rental rates, which are currently below market.”
He adds Deerfield Beach’s overall base rents have grown 39% since 2011 but are sti ll 38% and 28% below Boca Raton’s Class A and B base rents, respectively. “Hillsboro Center is the most affordable option in this market, which provides Grover Corlew plenty of runway to increase rents in the future,” O’Donnell notes.
Grover Corlew points to the area surrounding its new property as very act ive, including just west of the complex where JM Family Enterprises is undertaking a $150-million renovation and expansion of its headquarters campus and Ram Realty Advisors, which is building the mixed-use Deerfield Station nearby.
“Hillsboro Center is a t remendous long-term investment for us,” adds Grover Corlew partner Mark Corlew. “This high-end complex fi ts in perfectly with our portfolio of signature office properties.”
Grover Corlew is a real estate investment management group focused on acquiring, developing and operating office, retail and multi-family properties across the Southeastern U.S. The firm has offices in South Florida, Orlando and Atlanta and provides in-house asset management and property management services. The company is also an active developer with in-house development expertise as well as strategic relationships with tenants and local developers throughout the Southeastern US.