The Real Deal Miami

New York investment firm pays $10M for West Palm offices

Current tenant pays below market rent on its 15-year lease

July 19, 2016 03:45PM

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1920 Wekiva Way

1920 Wekiva Way

The Sentinel Real Estate Corp., an international investment advisory firm with $5.3 billion worth of assets, just bought a single-tenant office building in West Palm Beach for $10.25 million.

Located at 1920 Wekiva Way, the three-story building measures 40,254 square feet and occupies 4.26 acres of canal-front land on the city’s southwestern border.

The deal was announced by commercial brokerage CBRE, which acted as the listing agency, and was also recorded in county records Tuesday.

CBRE was hired by the previous owners, an investment entity sponsored by AIC Ventures, which originally paid $8.5 million for the property only two years ago.

According to CBRE’s Todd Weintraub, who marketed the property, one of 1920 Wekiva’s most attractive features was its long-term tenant. National engineering firm Kimley-Horn and Associates has 13 years left on its 15-year, triple-net lease for the building, which it occupies entirely.

Plus, Kimley-Horn pays “below market rent,” he said, meaning Sentinel could potentially bring it up to market rates once the firm’s lease is over.

The brokerage’s Mark Drazek and Ray Romano, who work for CBRE’s National Net Lease Property Group, also worked on this deal. — Sean Stewart-Muniz