The Real Deal Miami

Boca offices sell for $28M, apartments next door get $63M loan

Buyer is joint-venture between local firm and Massachusetts investors

November 20, 2015 03:30PM
By Sean Stewart-Muniz

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The offices at 900 Broken Sound Parkway, one of three buildings sold in a transaction this week

A pair of Boca Raton office properties, located next to an upcoming apartment development that just scored construction financing, were just sold for $28.25 million.

The trio of buildings are located at 5500 and 5000 Northwest Broken Sound Boulevard, as well as 900 Northwest Broken Sound Parkway. They were sold by an affiliate of New York’s Praedium Group, a real estate investment company.

The deal took place through two deeds: one for $19.75 million, which included the two buildings along Northwest Broken Sound Boulevard, and one for $8.5 million, which included the offices on Broken Sound Parkway.

The buyer for both properties was a joint-venture between Mainstreet Capital Partners, based in Fort Lauderdale, and the Davis Companies, based in Massachusetts. They financed their deal with a $13 million loan from Bank of America, according to Broward County records.

Together, the properties house 210,595 square feet of space, according to a LoopNet listing. That means the purchase price breaks down to roughly $134 for the whole portfolio.

Rendering of the Residences at Broken Sound residential complex

Rendering of the Residences at Broken Sound residential complex

Records show the Praedium affiliate paid $37 million for the offices as well as an adjacent piece of vacant land in 2007. The seller for that deal was Siemens, an international engineering group based in Germany.

Praedium later sold the extra 18.7 acres for $14.8 million to a company called Residences at Broken Sound LLC. The entity, which is also managed by Praedium executives, is developing a 370-unit residential project on the site in conjunction with CC Residential, a Codina-Carr company.

The two just scored a $62.5 million construction loan from PNC Bank to begin construction. According to CC Residential’s website, the group expects to break ground this year.