Two Broward County real estate investment firms teamed up with New York City-based TFK Real Estate Investment to acquire a three-building office campus in Hollywood for $50 million.
The joint venture among TFK, Fort Lauderdale-based Fox Ridge Capital and Pompano Beach-based Jax Capital Investments paid about $197 a square foot for Venture Corporate Center at 3440 Hollywood Boulevard and 200-300 South Park Road. The properties total 253,742 square feet.
The 16-acre office campus is near a redevelopment site where Alta Developers plans to build a two-tower mixed-use project.
The firms financed the deal with a $46.3 million loan from Argentic Investment Management, according to Cushman & Wakefield, which represented the buyers in an off-market deal.
Seller Black Creek Group, a Denver, Colorado-based real estate investment firm, paid $45.7 million for Venture Corporate Center in 2015, records show.
Fox Ridge, led by managing principal Grant Horwitz, focuses on office, retail and mixed-use assets in the Southeast. In March, the firm acquired an office building at 1625 North Commerce Parkway in Weston for $8.3 million.
TFK, led by founding principal Dennis Friedrich, also focuses on office, retail and mixed-use properties. Jax Capital, led by President Jeremy Jackson, specializes in multi-tenant industrial, retail, office and multi-family properties in the Southeast and mid-Atlantic.
Venture Corporate Center was 63 percent occupied at the time of contract, according to a Cushman release. Since then, leasing activity has picked up due to completed building renovations in the lobbies, common areas and restrooms, the release states.
Cushman’s Dominic Montazemi and Scott O’Donnell represented the buyers. Katherine Ridgeway and Travis Herring, also with Cushman, were among the group handling leasing for the properties.
The joint venture plans to invest significant capital to enhance the overall tenant experience, Montazemi added.
A recent Avision Young second quarter report for the office market in Fort Lauderdale, which includes all of Broward, shows total sale volume of $694.3 million between January 2020 and June 2021. The largest deal was Midtown Capital Partners’ acquisition of 1700 Plantation Pointe for $78 million. Midtown paid $534 a square foot for the property at 1700 North University Drive in Plantation.
While the Broward office vacancy rate has hit a 10-year high of 10.9 percent, asking rents have increased by 10.4 percent since the onset of the pandemic, rising to an average of $35.68 a square foot, according to Avision Young.