Here’s what tenants pay at this newly recapitalized Boca Raton mixed-use portfolio

Four office and retail complexes in Boca Raton get $99M CMBS refi with majority stake sale

Miami /
Apr.April 19, 2021 10:30 AM
Omicrom’s Dan Statlander with (clockwise from left) Fountains Center, Boardwalk @ 18th, Grove Centre and City National Park (Omicrom Development)

Omicrom’s Dan Statlander with (clockwise from left) Fountains Center, Boardwalk @ 18th, Grove Centre and City National Park (Omicrom Development)

These are interesting times for the South Florida office market, with the pandemic pushing some tenants to give up space, while more firms from the Northeast consider moving to the region.

One office landlord betting on the market’s upside is Boca Raton-based Omicrom Development, which recently landed a $99 million CMBS loan from Citi Real Estate Funding and Bank of America for a four-property mixed-use portfolio in suburban Boca Raton.

In addition to paying off prior debt, the new loan allowed an Omicrom-led group to acquire a majority stake in the portfolio, which has undergone $52.5 million worth of renovations and repositioning in recent years.

Documents associated with the securitization of the debt provide an inside look at the properties’ finances.

As of January, the 515,000-square-foot Boca Office Portfolio was 90 percent leased to about 150 office and retail tenants, with no single tenant accounting for more than 3.5 percent of the rentable area.

The four office complexes, which consist of about 20 office, medical and retail buildings in total, are all located within 10 minutes of each other along Powerline Road.

The portfolio includes the seven-building Fountains Center at 7000-7700 West Camino Real, the two-building Grove Centre at 21301 Powerline Road, the City National Bank Plaza complex at 7000 West Palmetto Park, and the lakeside Boardwalk at 18th at 6853-6909 Southwest 18th Street.

Within the portfolio, the landlord manages about 12,000 square feet of “executive suites” — small units leased on six-month and annual terms “mostly to sole practitioners in professional fields,” according to an S&P report.

The prior owners of the portfolio, a joint venture between Boston-based TJAC Development and Kireland Equity Investments, acquired the properties between 2012 and 2016 for a total of $78 million.

At the time of acquisitions, one of the properties was just 30 percent occupied and in receivership, “while the other properties suffered from minimal investment, low occupancy, and low quality tenancy,” according to S&P.

As part of the recent recapitalization, Bahamas-based investment manager Holdun Family Office also acquired a stake in the portfolio alongside Omicrom. Four Omicrom principals are named as guarantors for the CMBS loan.

The properties have weathered the pandemic quite well, and have remained open throughout the past year. According to S&P, about 50 tenants received one- to three-month rent deferrals in 2020, most of which was paid off by year’s end.






    Related Articles

    arrow_forward_ios
    Healthpeak Properties CEO Thomas Herzog. (Healthpeak, Sonata)
    Fortress buys three Palm Beach County assisted living facilities for $30M
    Fortress buys three Palm Beach County assisted living facilities for $30M
    Banyan Street Capital CEO Rudy Prio Touzet and KBS CEO Charles Schreiber Jr. with Weston Corporate Center (KBS)
    Banyan Street Capital buys Weston office complex for $52M
    Banyan Street Capital buys Weston office complex for $52M
    830 Brickell and 401 E Las Olas Blvd (Google Maps)
    Lease roundup: Thoma Bravo signs major lease in Brickell & more
    Lease roundup: Thoma Bravo signs major lease in Brickell & more
    ABS National Business Parks manager Gregg Schenker, Stiles CEO Kenneth Stiles and Garden Plaza in Palm Beach Gardens (CBRE, Stiles, ABS)
    Stiles sells Palm Beach Gardens office complex for $31M
    Stiles sells Palm Beach Gardens office complex for $31M
    Midtown Capital Partners managing partner Alejandro Velez (Cushman & Wakefield, Midtown Capital)
    Midtown Capital Partners buys Plantation office building for $78M
    Midtown Capital Partners buys Plantation office building for $78M
    6303 and 6505 Blue Lagoon Drive with RealOp Investments CEO Reggie Bell (Google Maps, LinkedIn)
    RealOp Investments buys Waterford office complex for $110M
    RealOp Investments buys Waterford office complex for $110M
    Sheer Science CEO Jonathan Greenhut. (LinkedIn via Jonathan Greenhut, The Koolik Group / Compass)
    Skincare CEO buys lakefront Boca Raton mansion for $5M
    Skincare CEO buys lakefront Boca Raton mansion for $5M
    Robert Reffkin and Michael Karp (Compass, Linkedin)
    Compass acquires BEX Realty’s Florida agents
    Compass acquires BEX Realty’s Florida agents
    arrow_forward_ios

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

    Loading...