Royal Castle Companies buys offices at Boca’s Park at Broken Sound
Closing prolonged because buyer assumed $5.1M CMBS loan
Elliot Stone’s Royal Castle Companies scooped up two office buildings in Boca Raton’s Park at Broken Sound for $8.9 million.
Royal Castle, through an affiliate, bought the properties at 6501 and 6531 Park of Commerce Boulevard from MTI Properties Florida, according to a news release from the buyer’s broker.
Reese Stigliano of Stigliano Commercial Real Estate represented the buyer. Jeff Kelly and Sean Kelly of CBRE represented the seller.
The selling entity is led by Tomo Fukumoto, state corporate records show.
Royal Castle assumed a $5.1 million commercial mortgage-backed securities loan from the seller and paid cash for the balance of the purchase price, Stigliano said.
The CMBS financing assumption process prolonged the closing period to six months because these types of loans are packaged with others and sold to investors, meaning the terms cannot be tweaked, he said. The 10-year term on the loan has about four years remaining and an interest rate in the low 4 percent range.
The buildings, which total 52,000 square feet, are adjacent to each other and on 4.4 acres, according to the release. Property records show they were built in 1987.
The two-story building at 6501 Park of Commerce is 60 percent leased, entirely to vision care company Premier Eye Care, according to Stigliano. It has 13,000 square feet of vacant space, which used to be occupied by one company but likely will be repurposed into multi-tenant spaces, he said. Stigliano Commercial Real Estate is handling leasing.
The one-story building at 6531 Park of Commerce is fully leased to Wolf Communications, Phoenix Media and J Tech.
Royal Castle plans capital improvements, including parking lot restriping and lobby upgrades, according to Stigliano.
Rents could be increased as a result of the revamp, but the offices still will be “relatively inexpensive” compared with downtown Boca Raton, he said.
Royal Castle, based in North Miami, is a commercial real estate owner, manager and developer, according to Stone’s profile on the Florida International University Foundation website. Stone is on the board of directors of the FIU Foundation, a nonprofit that solicits and administers gifts for the advancement of FIU.
The Park at Broken Sound, previously called Arvida Park of Commerce, was first developed in the 1970s, spanning 700 acres with only offices. In recent years, additional development has included residential and retail buildings, with the aim to turn Park at Broken Sound into a live-work-play community where residents can walk to their jobs and entertainment. It was rebranded in 2015.
Apartment projects recently completed at the Park at Broken Sound include the 322-unit Aura Boca and the 297-unit Manor Broken Sound.
In November, Brookfield Properties paid $8.3 million for a fully leased office building at the Park at Broken Sound.