Office towers, garage planned for Palm Beach Gardens

Miami /
Sep.September 16, 2015 04:30 PM

An affiliate of DiVosta Investments has filed an application to build a pair of 11-story office buildings and a three-story parking garage in Palm Beach Gardens, a development that will fill a void in the city, industry insiders say.

The project is planned for 3874 Kyoto Gardens Drive,  just north of PGA Boulevard and just east of Alternate A1A. Each office building is slated for about 112,000 square feet and the garage for 714 spaces.

“With the explosive growth in Palm Beach Gardens and a fantastic location with visibility from I-95,” the project is a no-brainer, Rebel Cook, head of Rebel Cook Real Estate brokerage in Palm Beach Gardens, told The Real Deal.

Neil Merin, chairman of NAI Merin Hunter Codman, which brokered the sale of the land to DiVosta affiliate Gardens Corporate Center, notes that the property is “basically an outparcel” of the upscale Gardens Mall. “It’s walking distance from Whole Foods Market and the rest of Downtown at the Gardens,” another upscale mall, he told TRD.

Office space is tight in the Palm Beach Gardens market, with occupancy standing at about 90 percent, Peter Applefield, founding principal at Aurum Property Partners, a real estate management/investment company based in West Palm Beach, told TRD.

The developers hope to finish the buildings by 2017. The project represents the first new significant Class A office space in Palm Beach Gardens since at least 2001.

Office space is tight in the city for several reasons, industry insiders said. “Northern Palm Beach County has become the preferred suburban marketplace,” Merin said. Business owners and managers are moving from West Palm Beach to Palm Beach Gardens.

“People who did have their offices in West Palm Beach now want something closer to home,” he said. “Palm Beach Gardens, like Jupiter, is a very high-end master-planned community with tight control on development.”

Palm Beach Gardens has 2.5 million square feet of office space, compared to about 7 million for downtown West Palm Beach. “When people want space in the Gardens, it runs out quickly,” Merin pointed out.

Finally, “there’s the economic expansion,” he said. “That’s partly due to people relocating here and creating jobs. A lot of that is in the northern end of the county.”

Applefield said the owners may need to pre-lease half of the space before construction begins. But Merin said that’s not an issue, thanks to DiVosta’s deep pockets.

“It has the wherewithal to build and withstand the market and will build without pre-leasing,” he said. “Anyone who waits to build on PGA Boulevard — or in South Florida generally — until the buildings are 50-percent pre-leased will have ‘Coming Soon’ signs on their property for an awful long time.”


Related Articles

arrow_forward_ios
Charl A. Schwartzel and 12247 Tillinghast Circle, Palm Beach Gardens
Pro golfer Charl Schwartzel sells Palm Beach Gardens mansion for $9M
Pro golfer Charl Schwartzel sells Palm Beach Gardens mansion for $9M
Avenir Development's Rosa Schechter and the Avenir project in Palm Beach Gardens
Avenir developer in Palm Beach Gardens pays $69M for more acreage
Avenir developer in Palm Beach Gardens pays $69M for more acreage
Lone Star Funds founder and chair John Grayken, Discovery Senior Living exec Richard Hutchinson and the Palm Beach Gardens location of Discovery Senior Living. (Discovery, Getty)
Lone Star Funds buys two Palm Beach County senior living complexes for $57M
Lone Star Funds buys two Palm Beach County senior living complexes for $57M
ABS National Business Parks manager Gregg Schenker, Stiles CEO Kenneth Stiles and Garden Plaza in Palm Beach Gardens (CBRE, Stiles, ABS)
Stiles sells Palm Beach Gardens office complex for $31M
Stiles sells Palm Beach Gardens office complex for $31M
Simon Gregg with the property (Trans Am)
Trans Am champ pulls into Palm Beach Gardens mansion for $9M
Trans Am champ pulls into Palm Beach Gardens mansion for $9M
Greg Norman with 382 South Beach Road and 12227 Tillinghast Circle (Getty, Shawn Hood Media, Google Maps)
Greg Norman picks up Palm Beach Gardens manse after selling Jupiter Island estate for $55M
Greg Norman picks up Palm Beach Gardens manse after selling Jupiter Island estate for $55M
Dustin Johnson and 15106 Palmwood Road (Getty, Flexmls)
Hole in one: Pro golfer Dustin Johnson sells Palm Beach Gardens estate
Hole in one: Pro golfer Dustin Johnson sells Palm Beach Gardens estate
PulteGroup's Brent Bake a rendering of the site in Avenir
Pulte buys site at Avenir in Palm Beach Gardens, plans 390-home development
Pulte buys site at Avenir in Palm Beach Gardens, plans 390-home development
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...