Black Lion scoops up North Palm Beach mixed-use center for $14M

Miami /
Nov.November 01, 2016 02:20 PM

Black Lion Investment Group just bought the Crystal Tree Retail/Office Center, a mixed-use property in North Palm Beach, for $14 million.

Chesser Group, a real estate conglomerate based in Rancho Cucamonga, California, is the seller. Crystal Tree is a four-story commercial complex with ground floor retail and office space, totaling 116,625 rentable square feet. The deal breaks down to about $120 per foot.

This is Black Lion’s second property purchase in South Florida, following the private equity firm’s $10 million buyout of the restaurant space at Brickell’s Four Ambassadors condominium in January.

Colliers International’s Ivo Tsinev brokered the deal, which almost fell apart when Hurricane Matthew came barreling toward South Florida and put North Palm Beach directly in its impact zone. Ultimately, Tsinev told The Real Deal, Crystal Tree suffered little to no damage, leaving no concern over whether Chesser or Black Lion would have to pick up a repair tab.

Black Lion’s strategy is to pick up commercial properties in upper-class neighborhoods with upside potential, Tsinev said. For Crystal Tree, located at 1201 U.S. Highway 1, Black Lion found it an attractive purchase because North Palm Beach has plenty of luxury condos, but not a lot of retail space.

Tsinev said the 1980’s-era shopping complex had also been passed up by national tenants in recent years because it hadn’t been well maintained.

“When I first started dealing with the property [in January 2015,] it was known by the locals as a dinosaur, he said.

Black Lion now plans to significantly renovate the complex, raise rents and bring in new tenants.

Data from the CoStar Group shows the complex is 89 percent leased, leaving some room to bring in more tenants. Stats on asking rents were not available. Its largest tenant is the Patio Shoppe of Coral Springs & the Palm Beaches, an outdoor furniture retailer that occupies 9,003 square feet.

Crystal Tree was last purchased in 2005 by Chesser for $16 million, or roughly $137 per rentable foot. The commercial center’s latest trade came at a significantly cheaper price per square foot than Martin and Irving Osher’s $19 million purchase of a similarly sized retail complex in North Palm Beach, which equated to $190 per rentable foot.

The deal was financed with a $10.22 million loan from the First National Bank of South Miami, according to county records.


Related Articles

arrow_forward_ios
232 Bahama Lane in Palm Beach, Jeffrey A. & Erica R. Keswin (middle) and Scott Goodwin & Kimberly Goodwin (right) (Photos via Compass, Facebook, Getty, Lyrical AM)
Hedge funders galore: One flips Palm Beach home to another for $7M
Hedge funders galore: One flips Palm Beach home to another for $7M
Igor Tulchinsky and 12088 Banyan Road (Getty, Douglas Elliman)
Hedge funder Igor Tulchinsky spends $40M on oceanfront North Palm Beach mansion
Hedge funder Igor Tulchinsky spends $40M on oceanfront North Palm Beach mansion
Tommy and Dee Olceppo Hilfiger with 313 Dunbar Road (Getty, Google Maps)
Tommy Hilfiger drops $21M for waterfront Palm Beach home
Tommy Hilfiger drops $21M for waterfront Palm Beach home
Cosmetic mogul Adrien Arpel and the Palm Beach home. (Getty, Frankel Ball Realty)
Cosmetic mogul Adrien Arpel sells waterfront Palm Beach home for $25M
Cosmetic mogul Adrien Arpel sells waterfront Palm Beach home for $25M
Late chairman and CEO of Affiliated Managers Group Sean Healey. (AMG, Compass)
Late investment tycoon’s estate sells beachfront manse for $35M
Late investment tycoon’s estate sells beachfront manse for $35M
Nicholas and Caroline Rafferty and 6709 South Flagler Drive, West Palm Beach (Getty/Patrick McMullan, Google Maps)
Financial adviser and interior designer buy waterfront West Palm Beach house for $7M
Financial adviser and interior designer buy waterfront West Palm Beach house for $7M
Janice McNair and 425 Worth Avenue. (Getty, Compass)
Houston Texans’ billionaire owner sells Palm Beach co-op for $5M
Houston Texans’ billionaire owner sells Palm Beach co-op for $5M
1341 South Ocean Boulevard, Palm Beach (Lawrence Moens)
Punch time clock heir sells oceanfront Palm Beach estate for $95M
Punch time clock heir sells oceanfront Palm Beach estate for $95M
arrow_forward_ios

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

Loading...