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Parmenter buys Palm Beach Gardens office complex for $81M
Fairway Office Center last traded for $53M in 2016
Parmenter Realty Partners scooped up the Fairway Office Center in Palm Beach Gardens for $81.2 million.
Doral-based Parmenter bought the three buildings at 7108, 7111 and 7121 Fairway Drive on 16 acres on the southwest corner of Florida’s Turnpike and PGA Boulevard, according to records. Parmenter, through an LLC, assumed a $38.9 million mortgage from the seller, which was reassigned from JPMorgan Chase Bank to Acore Capital Mortgage.
The seller is a joint venture between C-III Capital Partners and three NAI/Merin Hunter Codman principals, Dung Lam, Neil Merin and Jordan Paul, records show.
The Class A buildings total 224,000 square feet and were roughly 84 percent occupied at the time of sale, according to NAI/Merin, which manages and leases the property.
Tenants include Alliant Insurance Services, AmWINS Brokerage of Florida, BEX Realty of Palm Beach Gardens, G4s Government Solutions and New York Life Insurance Company.
The complex last traded in 2016 for $52.5 million, property records show. The 7108 Fairway Drive building, the only one on the south side of the street, was constructed in 1989. The 7111 Fairway Drive building was built in 2003, and the 7121 Fairway Drive building in 1999, according to records.
Fairway Drive is within the PGA National Resort and & Spa community. Brookfield Asset Management owns PGA National Resort.
Parmenter, founded in 1989 by Darryl Parmenter, has bought and managed more than $2 billion in assets on behalf of institutions, life companies, sovereigns, global fund sponsors and family offices across 15 U.S. markets, according to its website. Its CEO is John Davidson.
C-III, which has several offices, including in New York and Irving, Texas, was founded in 2010 and focuses on asset and fund management, principal investment, investment sales, property management and brokerage, according to its website. In 2012, C-III acquired NAI/Merin. C-III’s chair and CEO is Andrew Farkas.
The South Florida office market still is reporting double-digit vacancies, although specific submarkets such as Miami’s Brickell Financial District and Wynwood neighborhood are faring better.
Overall, Palm Beach County outperformed Miami-Dade and Broward counties in reducing vacancies in the fourth quarter of 2021, according to Cushman & Wakefield. Palm Beach County’s vacancy rate dropped to 13.2 percent, from 14.5 percent during the same period of 2020. Landlords raised the average asking rent to $39.86 per square foot, up from $38.40 in the same quarter of 2020, according to the report.
Palm Beach County also scored the biggest office investment sale of 2021: Stephen Ross’ Related Companies’ purchase of the Phillips Point office towers in downtown West Palm Beach for $282 million.