A joint venture led by a Boca Raton-based real estate investment firm picked up a three-building office complex in its own backyard.
An entity registered to Josh Procacci, chief investment officer for IP Capital Partners, paid $77.3 million for Fountain Square at 2600, 2650 and 2700 North Military Trail, according to records.
The deal equates to about $318 a square foot for the nearly 243,000-square-foot complex.
IP Capital, led by president Jason Isaacson, teamed up with New York real estate firm Edge Principal Advisors to purchase the Class A complex, according to a press release. The joint venture’s EIP Fountain Square took out a $56.5 million mortgage with CIBC Bank USA.
The seller is a joint venture between Salt Lake City-based Bridge Investment Group and Denver-based Ascentris that paid $54.5 million for the property in 2017, records show. Christian Lee and José Lobón with CBRE represented the seller.
The firms spent $4.9 million on new lobbies, restrooms and common area corridors, modern exteriors, a conference center, outdoor pavilions and signage, according to the release. The renovations also included 23,000 square feet of high-tech, move-in-ready spec suites that can be customized for tenants.
Since Bridge and Ascentris acquired the property, they also have inked leases for more than 121,000 square feet, including 54,000 square feet of new and expanded leases, the release states.
IP Capital owns more than 6 million square feet of commercial real estate in Florida, according to the release. In March, it bought a three-story office building in Sunrise for $25 million.
Founded in 2008, Edge Principal Advisors has invested more than $1 billion in all real estate asset classes across the U.S., according to the firm’s website.
In the third quarter, the Boca Raton office submarket’s vacancy rate was 10.7 percent, with an average asking rent of $38.42, according to a Colliers report. The overall Palm Beach County office market had a 9.7 percent vacancy rate and $43.35 average asking rent in the quarter.
Recent office transactions in Boca Raton include Healthcare Trust of America’s $50 million purchase of 1905 Medical Center, and Grover Corlew’s acquisition of the Bank of America Tower for $44.6 million.