The Real Deal Miami

JPMorgan sells Fairway Office Center in Palm Beach Gardens for $52.5M

Deal smacks of similar trade JPMorgan made early last year

August 01, 2016 04:30PM
By Sean Stewart-Muniz

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One of three buildings at the Fairway Office Center

One of three buildings at the Fairway Office Center

After more than a decade of ownership, JP Morgan Asset Management has sold its Fairway Office Center for $52.5 million — $17.5 million below what the firm originally paid a decade ago.

The deal covers three properties located at 7108, 7111 and 7121 Fairway Drive within the city’s PGA National Golf Club community. They were built individually between 1989 and 2003, altogether measuring 225,674 square feet.

County records show the buyer is an affiliate of C-III Capital Partners, an investment manager headquartered in Texas that has about $3.7 billion under its umbrella. The sale breaks down to $232 per square foot.

JLL’s capital markets team represented JPMorgan for the deal.

JPMorgan had owned the three-building complex since 2006, when it swooped in and bought the Fairway campus for a flat $70 million. That same year, the financial giant sank $77.94 million into a second office complex in Palm Beach Gardens called the Financial Center at the Gardens.

Much like the Fairway, JPMorgan took a hit on its $63 million sale of the Financial Center last year.

According to a recent LoopNet listing for the complex, about 22,000 square feet of space is vacant for all three buildings. Asking rents start at $23 per square foot, triple net.

C-III has clients that range from pension fund planners to high-net-worth individuals, according to its website. The company’s lender arm, C-III Asset Management, is a major commercial mortgage servicer in the real estate industry.

The company financed its purchase with a $37.8 million mortgage from JPMorgan Chase Bank.