A Massachusetts investment firm just purchased a Class A office building in West Palm Beach for $22.75 million, property records show.
FoxRock Properties, headquartered in Quincy, Massachusetts, bought the building known as Courthouse Commons at 444 West Railroad Avenue from a joint venture between Boca Raton-based IP Capital Partners and Fir Tree Partners. The property sold for $265 per square foot.
FoxRock Properties, which owns more 2 million square feet of medical, office, and industrial space in Boston, was represented by CBRE’s Kevin McCarthy and Kevin Probel. Records show the property was last purchased for $18 million in 2015.
Current tenants at the 85,668-square-foot building include the General Services Administration (GSA), which occupies 34,921 square feet, as well as the law firm Burlington and Rockenbach, and US Legal Support, according to a release. Granite Telecommunications plans to lease 20,841 square feet on the second floor.
The new owners plan to add a 6,000-square-foot gym in the first floor, which is currently vacant, and bring a restaurant to a vacant space on the ground floor, according to the release.
Building amenities include a lobby featuring granite and marble finishes, an on-site cafe with indoor and outdoor seating, and an attached 5-story parking garage with a covered pedestrian skywalk, providing direct access to the County Courthouse. FoxRock Properties’ Jason Ward declined to provide further details about plans for the property.
In recent years, West Palm Beach has tried to position itself as a “Wall Street South” and a destination for financial services firms, but economic development officials say the area’s lack of Class A office space hinder the city’s ability to attract companies.
West Palm’s most recently built Class A office space was the CityPlace Office Tower, which was developed by the Related Cos. and Crocker Partners of Boca Raton in 2008.