The Real Deal Miami

Workspace buys 1.1M sf of commercial space in South Florida as part of $1B deal

Total deal includes nearly 10M sf of leasable space throughout U.S.

October 06, 2016 01:30PM
By Sean Stewart-Muniz

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750 Park of Commerce Boulevard (Inset: Workspace Property Trust CEO Thomas Rizk and Liberty Property Trust CEO William Hankowsky

750 Park of Commerce Boulevard (Inset: Workspace Property Trust CEO Thomas Rizk and Liberty Property Trust CEO William Hankowsky

As part of its nearly $1 billion commercial property buy from Liberty Property Trust, the Workspace Property Trust just closed on its purchase of 11 office buildings in Broward County for $224.64 million.

County records show the private investment company just bought an assortment of suburban office buildings primarily clustered in two office parks in Sunrise and Miramar, with the remainder located within Boca Raton’s Park at Broken Sound. The properties house 1.14 million square feet of office space altogether, so the deal breaks down to about $197 per square foot.

According to data from the CoStar Group, the majority of those buildings are Class A offices boasting occupancies of more than 90 percent. Asking rents range between $12 per square foot and $33 per square foot, triple net, depending on the building.

Breakdown of the deal

Breakdown of the deal

Liberty’s portfolio in South Florida gradually came together over nearly two decades, starting with its $7.6 million purchase of the offices at 951 Northwest Broken Sound Parkway in Boca Raton. All tallied, the 11 were pieced together for just under $100 million, or about $87 per square foot, county records show.

The sale of these South Florida offices is part of Liberty’s strategy to offload its suburban real estate throughout the country. Including the 11 buildings in Broward and Palm Beach counties, the real estate investment trust is selling 108 office and flex properties located in Pennsylvania, Florida, Minnesota and Arizona to Workspace and its partner Safanad for $969 million. The portfolio houses 9.9 million square feet of leasable space.

While Liberty is downsizing its holdings, Workspace is on a veritable buying spree. This is the company’s second major portfolio acquisition since it was founded late last year by partners Rizk Ventures, Forum Partners, JMP Group and EverWatch Capital with the intent of building a large suburban real estate portfolio. Its first deal was the $245 million purchase another Liberty-owned collection of office buildings in Pennsylvania.

TRD researcher Eda Kouch contributed reporting to this article. Here’s a full breakdown of the South Florida properties below:

CountyAddressSize (in square feet)Asking RentOccupancyTypeApproximate Value
Palm Beach County951 Broken Sound Parkway85,610 $ 14.00 86.20%Class B Office $ 13,962,805
Palm Beach County750 Park of Commerce Blvd95,331$22-$3396%Class A Office $ 15,115,733
Palm Beach County777 Yamato Rd155,608$16.75100.00%Class A Office $ 24,673,285
Broward County3350 SW 148th Ave154,090$1998.60%Class A Office $ 32,123,722
Broward County1301 International Parkway140,160$2197.40%Class A Office $ 29,219,683
Broward County3400 Lakeside Drive120,130$17.50100.00%Class A Office $ 25,043,953
Broward County3450 Lakeside Drive119,598$16.75-2497.60%Class A Office $ 24,933,045
Broward County13621 NW 12th St106,425$12100.00%Class A Office $ 22,186,820
Broward County3100 SW 145th Ave104,337$21-22100.00%Class A Office $ 21,751,527
Broward County13630 NW 8th St29,999$13.50100%Class B Office $ 4,509,695
Broward County13650 NW 8th St24,732$13.50100%Class C Office $ 3,867,658
Broward CountySW 145th AvenueN/AN/AN/ACommercial land $ 7,256,199
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