JV buys West Palm Beach office building for $13M

The 66K sf building sold for $204 psf

JV buys West Palm Beach office building for $13M
District Pointe with Verdex President Rex B. Kirby, Jr. and CEO of Index Rickard Haraldsson (Verdex, Index Invest)

A joint venture between an investment firm and a construction group purchased an office building in West Palm Beach.

District Pointe LLC, a joint venture between Sweden-based Index Investments and West Palm Beach-based Verdex Construction, bought the 65,760 square-foot building at 1501 Belvedere Road for $13.4 million, according to a release. The sale comes out to $204 per square foot.

Index Investments’ North American headquarters is in Jupiter.

The building, built in 1983, was originally owned by Houston, Texas-based Rinker Materials Corp & Subsidiaries, which paid $775,000 for the property in 1979, according to records. San Pedro, Mexico-based CEMEX acquired Rinker with a $14.3 billion takeover bid in 2007, according to published reports.

A Colliers team, led by Mark M. Rubin and Bastian Laggerbauer represented Index and Verdex. Steve Hyatt and Daniel Silver of Berger Commercial Realty represented CEMEX. The deal was completed off-market.

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The property has been a single-tenant building since it was built, used by Rinker, then CEMEX. The joint venture plans to remodel the building, and Verdex will be a full floor tenant, with space available for more tenants, according to a release.

This is the latest office deal in South Florida’s hot office market, despite the pandemic.

Last month, American Commercial Realty picked up a North Palm Beach mixed-use property for $36 million. Called Crystal Cove Commons, the property features 75,000 square feet of ground-floor retail next to a four-story office building.

Also in November, In separate deals totaling $49.1 million, Tricera Capital and Brookwood Financial Partners picked up two Class A office buildings in Boca Raton. Brookwood Financial, a Beverly, Massachusetts-based real estate investment firm, bought the six-story office building known as Sabre Centre I at 5901 Northwest Broken Sound Parkway for $29.1 million. Miami-based Tricera paid $20 million for Milan at Town Center at 1675 North Military Trail.

In August, Acquest Development paid $23 million for a pair of office buildings that are part of South University’s Royal Palm Beach campus. Acquest paid $15.3 million for 9801 Belvedere Road and an adjacent 3.2 acre parking lot, and $7.7 million for the building at 9901 Belvedere Road.