Boca financial center trades for $23M
The Wells Fargo Plaza in Boca Raton was just sold for $23.16 million to a private real estate investment company.
IP Capital Partners, which is headquartered in Boca, paid roughly $73 per square foot to acquire the plaza’s two buildings and its connected parking garage. The firm financed the acquisition with a $17.5 million loan from BankUnited, according to Palm Beach County property records.
The 2.4-acre plaza was built in 2000 and consists of a seven story, 88,509-square-foot office building, a two-story bank location with 13,800 square feet, and a six-story parking garage with 598 spaces. It was built in two phases, starting in 1990 and finishing in 2000.
The offices are 89 percent occupied, with tenants including Wells Fargo and law firms Kanner & Pintaluga and Grossman & Roth.
The seller was a Florida affiliate of New York-based Real Estate Capital Partners, an investment advisory firm. RECP was transferred ownership of the property in 2002 from Songy Partners Limited, a commercial real estate firm based in Atlanta. Songy paid $26.6 million for the plaza that year.
Mike Davis, Michael Lerner and Rick Brugge from commercial brokerage Cushman & Wakefield represented the seller.
“This boutique office property is situated at one of the premier intersections in downtown Boca Raton with superior amenities and immediate access to high-end residential and decision-makers,” Davis wrote in a news release about the sale.
The release cites this sale as an example of the strengthening office market in Palm Beach County, referencing data from Cushman & Wakefield’s quarterly market report.
“Investors continue to chase yield and below-replacement-cost pricing in the Palm Beach market,” wrote Chris Owen, author of the report. “The Palm Beach investment sales pipeline is strengthening, and we expect to see a significant pickup in transactions throughout the remainder of 2015.”