The brothers behind Boca Raton-based Pebb Enterprises are betting that buying two foreclosed office properties on the cheap will work out despite their location near Palm Beach Lakes Boulevard, the once dominant business district in West Palm Beach that has given way to glitzier new development downtown.
According to the Palm Beach Post, brothers Jared and Ian Weiner bought the 113,526-square-foot Sabadell United Bank office building, at 1645 Palm Beach Lakes Boulevard, and 64,094-square-foot Horizon office building, at 1401 Forum Way, for $9.5 million and $5.4 million, respectively, in an auction last October. The buildings last traded for a combined $28.3 million in 2006.
A combination of factors lead Pebb to believe the investment will work out. Even after an extensive upgrade, the buildings can still offer cheaper rents to tenants than high profile new towers like Phillips Point, Esperante and CityPlace Tower. In fact, Pebb has already taken the Horizon building to 55 percent occupancy from 40 percent. And even though they aren’t downtown, the two buildings are close to the Palm Beach County courthouse and the forthcoming Palm Beach Mall. Once complete in 2013, the latter can become a big draw to tenants looking for West Palm Beach space but unwilling to pay the high prices downtown, the Post said.