The Real Deal Miami

Coral Springs corporate center trades for $20.2M

Seller bought property out of foreclosure in 2011 for $10.85M
By Sean Stewart-Muniz | July 08, 2015 05:45PM

The Heron Bay Corporate Center in Coral Springs

A New York-based investment company just paid $20.2 million to acquire an office campus in Coral Springs.

The Heron Bay Corporate Center, at 11555 and 11575 Heron Bay Boulevard, is a two-building office campus that has a little over 89,000 square feet of space. Benedict Realty Group purchased both buildings, which were built between 1999 and 2001.

Benedict buys and manages properties in New York, according to the company’s website.

The seller, Ivy Realty, first purchased the buildings in 2011 for $10.85 million. That sale was the culmination of two foreclosure lawsuits — one raised against each of the buildings by two insurance companies — related to an $11.9 million mortgage taken out by the previous owners, according to the South Florida Business Journal.

The holding companies that owned the property at that time were managed by WhiteStar Advisors. They had paid a combined $19.7 million to acquire the campus earlier that year.

Scott O’Donnell of CBRE

After Ivy purchased the campus at a heavily discounted price, the company spent three years increasing occupancy from 30 percent to 100 percent, according to a news release about the sale. The group also renovated the buildings, including updated lobbies and digital directories.

“As a result, we received a strong response to this core-plus offering from domestic and offshore equity sources that were attracted to the combination of both the secure cash flow and the value-add component from lease rates that are now below market,” Scott O’Donnell of commercial brokerage CBRE said in a statement.

O’Donnell was the lead broker on the listing. Dominic Montazemi, Christian Lee, Miguel Alcivar, Travis Herring, Deanna Lobinsky and Jason Hochman of CBRE assisted with the sale. Attorney Stuart T. Kapp also represented the seller.