TMT Properties buys Delray Beach offices
The deal is part of a 1031 exchange
UPDATED, Sept. 28, 2019, 11:20 a.m.: TMT Properties bought two office properties in Delray Beach for $10.1 million, a year after buying an adjacent building.
Coral Springs-based TMT Properties purchased the two 30,000-square-foot Class B buildings at 190 and 200 Congress Park Drive for $168 per square foot, according to TMT Properties. The seller is Parkview Properties.
The purchase was part of a 1031 exchange, according to Joseph Maas general manager of TMT Properties.
Watershed Treatment Programs, which occupies about 20,000 square feet as one of the largest tenants at the office buildings, recently announced that it is laying off more than 200 employees and will liquidate its assets.
Watershed, an addiction treatment center, is still paying rent as it winds down its operations, according to Maas. He said the departure of Watershed allowed the group to buy the property at a discount.
Other tenants at the office properties are largely medical firms, law firms and accounting firms, Maas said.
TMT plans to paint some of the buildings and make some minor aesthetic changes, but does not expect any major renovations.
In September 2018, TMT purchased the office property at 220 Congress Park Drive for $11.4 million. Maas said the most recent acquisition means the firm is also taking over management of the Congress Park Association.
In 2018, TMT Properties bought a large shopping center in Boca Raton at 11401 West Palmetto Park Road for $18.5 million.
Delray Beach is one of the hottest markets for new development in Palm Beach County. Pebb Capital recently paid $40 million to acquire the Midtown Delray Beach mixed-use site on Atlantic Avenue. It could include 50,000 square feet of retail and restaurant space, 90,000 square feet of office space, and about 100,000 square feet of residential units or hotel space.