TA Realty sells Palm Beach Gardens office building for $17M

Gardens Pointe, anchored by Merrill Lynch, sold for $482 psf

3507 Kyoto Gardens Drive in Palm Beach Gardens, FL (TA Realty, iStock)
3507 Kyoto Gardens Drive in Palm Beach Gardens, FL (TA Realty, iStock)

Real estate investment behemoth TA Realty sold the Merrill Lynch-anchored Gardens Pointe for $16.8 million.

Sunnyfield South bought the property at 3507 Kyoto Gardens Drive in Palm Beach Gardens, according to a release from one of the brokers.

Sunnyfield South is affiliated with Fort Lauderdale-based Levy Realty Advisors and also is managed by David Dimston and Amy Berko Illes, according to Florida corporate records.

It scored a $9 million acquisition loan through Principal Life.

Scott O’Donnell and Mike Ciadella of Cushman & Wakefield represented the seller. Jason Hochman and Ron Granite, also of Cushman, secured the financing for the buyer.

Alan Levy of Levy Realty Advisors represented the buyer.

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The deal for the 34,867-square-foot building breaks down to $482 per square foot.

The four-story building was constructed in 2009, and the property includes a 60-spot parking lot, according to Loopnet. TA bought the building for $11 million in 2010, property records show.

Gardens Pointe was 95 percent leased at the time of sale, with tenants including KeyBank, according to the release.

Founded in 1982, Boston-based TA Realty has managed, purchased and invested in more than $30 billion of real estate on behalf of domestic and international institutional investors and other clients, according to its website. TA’s managing partners are James Buckingham, Michael Haggerty and James Raisides.

Its investments span asset classes throughout the U.S., including South Florida, where TA bought a Hialeah Gardens warehouse in April for $26 million.

The South Florida office market is showing mixed signals, as it emerges from remote work during the pandemic. While vacancy rates across the region remained relatively high at about 10 percent in the third quarter, landlords have been increasing rents as they hope for positive net absorption and an influx by out-of-state companies.

In Palm Beach County, the vacancy rate in the third quarter was 9.7 percent, down 0.3 percentage points from the same period of last year, according to a Colliers report. At the same time, the average asking rent hit $36.65 per square foot, up by 11 cents from the previous quarter.