The Real Deal Miami

Investors score $38.1M mortgage for WPB financial center

Company buys and manages commercial real estate throughout U.S.
The Financial Center at the Gardens in West Palm Beach, valued at more than $60 million

The Financial Center at the Gardens in West Palm Beach, valued at more than $60 million

Two months after dropping $63 million on a 10-story office building in West Palm Beach, a group of investors has taken out a $38.1 million mortgage on its new property.

The Financial Center at the Gardens, at 3801 PGA Boulevard, is a 188,772-square-foot office tower that was built in 1997. It has its own four-story parking podium, and was 90 percent leased at the time of its sale.

KBS Realty Advisors, which describes itself as one of the largest buyers of commercial properties in the United States, was provided financing by TD Bank.

Peter Bren and Charles J. Schreieber, president and CEO of KBS Realty Advisors, respectively

Peter Bren and Charles J. Schreiber, president and CEO of KBS Realty Advisors, respectively

The company bought the tower at a roughly $15 million discount from another group of institutional investors. The seller, an LLC titled 3801 PGA Acquisition Company, was headed by investment managers with JP Morgan.

The financial center was originally used as office condos for medical practices. Its legal description in county records is still the Medical Mall at Palm Beach Gardens. Now, the building is occupied by financial companies like JP Morgan Chase, UBS Financial Services, Morgan Stanley, Fidelity National Title and RBC Capital Markets.

KBS also owns the office complex at 555 Washington Avenue in Miami Beach, which it paid $30 million to acquire in 2007, according to property records.