Investors buy Palm Beach office building for $38M

Blue Water Advisors sold building 20 months after buying it and another property for $38.5M

Spencer Schlager and Charles Rosenberg (Rosemark Management) (Getty Images)
Spencer Schlager and Charles Rosenberg (Rosemark Management) (Getty Images)

UPDATED, Sept. 29, 11:15 p.m.: A Palm Beach-based investor and a New Yorker heading a real estate investment firm bought a Bankers Row office building for $37.8 million.

Spencer Schlager, a partner in CS Ventures, and Charles Rosenberg, of New York City-based Rosemark Management, bought the property at 440 Royal Palm Way, according to records.

Rosemark is the investment manager and purchaser on behalf of the Arthur G. Cohen Family Office, and its portfolio spans 5 million square feet of residential and commercial assets across the U.S., according to its website.

Blue Water Real Estate Fund I, through an affiliate, sold the building roughly 20 months after paying $38.5 million for the building along with a next-door office property at 450 Royal Palm Way, records show.

The seller is led by private equity firm Blue Water Advisors’ Alex Hufty Griswold and William Whitridge, as well as by Griswold’s brother, Benjamin Griswold. Blue Water has offices in Boca Raton and New York.

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The 61,609-square-foot building was constructed in 1986 on 1.4 acres, property records show.

The three-story, all white building with a ground-floor breezeway is near the foot of the Royal Park Bridge that connects Palm Beach to West Palm Beach.

The property is fully leased. Anchored by SunTrust Private Wealth, other tenants include private investment firm RedBird Capital Partners, private equity firm Brightstar Capital Partners, and investment bank and brokerage Stifel.

The financial tenant roster is in line with the area becoming a draw for these kinds of firms in recent years, although some heavy hitters are opting for nearby West Palm Beach.

Billionaire hedge fund manager Paul Singer’s Elliott Management and Goldman Sachs are reportedly in talks or already leasing at Related Companies’ 360 Rosemary in downtown West Palm. Stephen Ross’ Related Companies has bet heavily on the office market there, scooping up two towers and half of the ownership stake in a third, with plans to build another tower.

Still, Palm Beach has seen some big office deals. The seller of the 440 Royal Palm Way building also sold the adjacent 450 Royal Palm Way for $17 million in February.