Delray industrial park returned to lender in deed-in-lieu

TRD MIAMI /
Sep.September 09, 2011 04:56 PM

Plaza One Realty has taken the Congress Park Business Center industrial complex in Delray Beach in a $16.4 million deed-in-lieu of foreclosure, according to Palm Beach County Circuit Court records.

The value of the note was $16.4 million, said attorney Richard Sollner, who prepared the deed.

Plaza One is a subsidiary of State Farm.

The 208,596-square-foot building is located at 420 Congress Avenue in Delray Beach, which has been looking to attract investors to the area as part of an initiative by Mike Malone, the president and CEO of the Greater Delray Beach Chamber of Commerce.

RREEF is a subsidiary of Deutsche Bank, based in Maryland.

Plaza One Realty’s Michael Smith could not be reached for comment, and Deutsche Bank’s corporate office did not reply to a request for comment.

The property was purchased by RREEF in 2006 for $13.2 million, and has a current appraised value of $9.6 million, according to the Palm Beach County Property Appraiser’s office.

CB Richard Ellis is currently marketing leases at the property, which is about half-full. The property is part of the so-called South Palm Beach County sector, which is performing a bit better than its northern counterpart, according to Jeff Kelly, a senior vice president at CB Richard Ellis.

“Overall, the vacancies in south Palm Beach County are in the 10 to 12 percent range, which isn’t out of hand; we just haven’t seen a lot of larger deals,” said Kelly. “This particular building we have, it does not subdivide well to accommodate smaller users — you’ve got to find somebody for about 40,000 to 50,000 square feet to fill the vacancy. We have people looking, which is a positive sign.”

The average price for Palm Beach County industrial properties is around $102 per square foot, according to data from LoopNet.

Generally, Delray’s commercial sector has shown improvement, according to broker Cecelia Boone of Southdale Properties.

“Delray, when everybody else is hemorrhaging, just gets a nosebleed,” she said. “It’s such a hot market; [the city] is trying to be more flexible with how they’re attracting commercial users.”


Related Articles

arrow_forward_ios
Ivan Chorney and Michael Martirena

Movers & Shakers: Top One Sotheby’s team joins Compass, shakeup at CBRE & more

Movers & Shakers: Top One Sotheby’s team joins Compass, shakeup at CBRE & more
Randy Klein and Ocean Delray (Credit: LinkedIn)

Crestron CEO to pay $7.6M for Delray Beach condo

Crestron CEO to pay $7.6M for Delray Beach condo
Delray Trails and Mike Nunziata

13th Floor closes on 120-acre golf course for active adult community

13th Floor closes on 120-acre golf course for active adult community
William Dabbs

Contractor guilty of manslaughter in fatal shooting of his boss

Contractor guilty of manslaughter in fatal shooting of his boss
Shorecrest Club Apartments

CBRE fund pays $132M for Shorecrest Club Apartments in Miami

CBRE fund pays $132M for Shorecrest Club Apartments in Miami
Craig Menin and 301 East Atlantic Avenue in Delray Beach (Credit: Google Maps)

Menin Development buys Johnnie Brown’s building in Delray Beach

Menin Development buys Johnnie Brown’s building in Delray Beach
9200 Rockybrook Way and Senada Adzem (Credit: Douglas Elliman)

Lakefront estate west of Delray Beach sells for $17M

Lakefront estate west of Delray Beach sells for $17M
Daily Digest Miami

LeBron James’ Unknwn store is opening Dec. 5, Palm Beach Gardens showroom trades for $10M

LeBron James’ Unknwn store is opening Dec. 5, Palm Beach Gardens showroom trades for $10M
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...