California teachers lose $132M in Palm Beach land sale

California Teachers Retirement System paid $162M in 2007

TRD MIAMI /
Dec.December 17, 2014 03:57 PM

Here endeth the lesson.

The California Teachers Retirement System learned the hard way not to invest at the peak of a market, taking a $132 million loss on a vacant industrial property in Palm Beach County, according to a published report.

CalSTRS and First Industrial Property, operating through FR/CAL 3 South Florida LLC, recently sold the 537-acre First Park South Florida site for $29.85 million in five transactions, the South Florida Business Journal reported. The deal was brokered by CBRE’s Robert Smith, Jeffrey Kelly and Kirk Nelson, according to the paper.

The sellers bought the site, formerly known as the Palm Beach Park of Commerce and the Florida Research Park, for $162 million in 2007.

“I guess they really wanted to get out,” Steve Garine, of S&K Worldwide Realty, who sold the property to CalSTRS, told the publication. “It takes a lot of money to carry the park. It’s a lot of taxes and a lot of management.”

The new owner is YTG Palm Beach, an affiliate of Atlanta-based TPA Group.  Atlantic Capital Bank wrote a $20 million mortgage that covered two properties in other counties, the paper reported. [South Florida Business Journal] — William J. Gorta


Related Articles

arrow_forward_ios
Shorecrest Club Apartments

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

From left: Eric Fixler, Joe Landsberg, Austin Levine and Andrew Hagaman

Movers & Shakers: CBRE expands debt team, Compass takes on two teams in South Florida & more

From left: Kyle Jones of Stiles Corp., Mark Corlew of Grover Corlew, Christian Lee of CBRE, Rod Loschiavo of Colliers International South Florida, and Greg Martin of Avison Young

South Florida office market has upside potential for developers, investors: panel

(Credit: iStock)

Foreigners emerge as the new heavyweights in China’s commercial property market

(Credit: iStock)

Report: Availability of U.S. warehouse space last year was the lowest since 2000

Arden Karson lists townhome at L’Hermitage

Arden Karson lists townhome at L’Hermitage

First Industrial Realty Trust pays $9M for Pompano Beach site

First Industrial Realty Trust pays $9M for Pompano Beach site

Co-working firms aren’t happy about CBRE launching competitor company

Co-working firms aren’t happy about CBRE launching competitor company

arrow_forward_ios
Loading...