The Real Deal Miami

Health care firm inks second biggest Palm Beach County lease of 2016

Health Care District signed the lease in December at $22 per square foot, triple net
By Katherine Kallergis | January 10, 2017 02:15PM

Flagler Waterview. Inset: Health Care District of Palm Beach CEO Darcy Davis and Neil Merin

Updated 9:35 a.m., Jan. 11: The Health Care District of Palm Beach County inked a 7.5-year, 42,000-square-foot lease in downtown West Palm Beach.

The health care company will move from Palm Springs to the Flagler Waterview building at 1515 North Flagler Drive, NAI/Merin Hunter Codman announced on Tuesday. Chairman Neil E. Merin represented both tenant and landlord, and director Lesley Sheinberg and commercial associate Matt Hedrick also represented the landlord, 1515 Flagler Property LP – an affiliate of Aetna Realty.

The deal marks the second biggest office lease in Palm Beach County in 2016. The largest is Ocwen Loan Servicing lease renewal in November for 51,546 square feet at 1661 Worthington Road in West Palm Beach, according to CoStar. Merin also brokered that deal.

The Health Care District is an independent taxing district that provides health care services including programs for public school children, a hospital, nursing facility and more. The organization will move into Flagler Waterview this summer. Merin said it was looking to move to downtown West Palm to a location with a parking garage and full medical zoning.

CoStar Group data shows the Health Care District signed the lease in December at $22 per square foot, triple net for floors 1 and 7. At its exact square footage of 42,386 feet, that means the company will pay $932,492, triple net.

The nine-story building was completed in 1998 and spans 163,411 square feet. It’s 88.6 percent leased with triple net asking rents ranging from $19.75 to $22 per square foot – lower than the market average of $28 per square foot.

West Palm Beach has attracted a number of medical/biotech businesses since last year, including cloud-based medical software company Integra Connect and Jupiter Medical Center at the Bank of America Centre at 625 North Flagler Drive. Palm Beach County officials have been working on attracting life sciences companies for the last 10 years, since Scripps located in Jupiter, experts previously told The Real Deal.

TRD Researcher Eda Kouch contributed to this report.