Netz USA sells Fort Lauderdale office building to NAI/Merin fund

UPDATED, Sept. 9, 10:10 p.m.: Netz USA LLC sold a Fort Lauderdale office building to MHCommercial Real Estate Fund.

Netz USA, a subsidiary of the publicly traded Israeli company Netzgroup Ltd., sold the 59,942-square-foot building for $11.75 million or $196 per square foot, according to a release.

MHC Oakland Park Owner LLC, an affiliate of a fund led by NAI/Merin Hunter Codman principals Neil Merin, Jordan Paul and Dung Lam, along with investor Joseph Sprouls, bought the property at 2601 East Oakland Park Boulevard.

MHCommercial Real Estate Fund plans to purchase up to $200 million of commercial real estate in the Southeastern U.S.

Netz USA purchased the building, known as the 2601 Building, for $13.1 million in 2015, along with 2611 East Oakland Park Boulevard. Netz USA sold the second property in November 2017 for $5 million.

The 2601 Building was developed in 1966 on a 1.24-acre site. After suffering significant damage during Hurricane Wilma in 2005, the building was gutted and rebuilt in 2007 with new roofs, mechanical systems and modern interior build-outs.

Cushman & Wakefield’s Scott O’Donnell, Dominic Montazemi, Greg Miller, Miguel Alcivar, Jason Hochman and Michael Ciadella represented Netz USA in the sale, according to the release.

The building was 96 percent leased at the time of sale. Tenants include The Africa Adventure Company, HL Law Group, Exit Ryan Scott Realty and Natural Transplants Hair Restoration Clinic.

Fort Lauderdale’s office market is seeing a large influx of new construction. According to a report earlier this year by the Fort Lauderdale Downtown Development Authority, office rents have skyrocketed from an average of $10 per square foot in 2013 to $34 per square foot in 2018.

Correction: An earlier version of this story incorrectly stated that it sold at a loss.