Brookfield Properties is looking to sell Boca Raton’s Mizner Park.
The massive mixed-use project is on the market unpriced, according to an offering obtained by The Real Deal. Completed in the 1990s, Mizner Park consists of a 272-unit apartment building, 270,000 square feet of retail buildings, a 268,000-square-foot office tower and 2,389 parking spaces. The entire project spans roughly 832,000 square feet.
A commercial real estate investor who inquired about the listing told TRD that offers have been submitted for as much as $290 million. The investor requested anonymity.
A JLL team led by Danny Finkle is marketing the project at 200-201 Plaza Real, 400 Northeast Mizner Boulevard and 400 North Federal Highway. Finkle declined comment, as did a spokesperson for New York-based Brookfield.
In 2018, Brookfield acquired Mizner Park as part of its $9 billion purchase of the project’s original developer, General Growth Properties. Brookfield, led by Jared Chupalia, owns the buildings, but leases the land underneath from the Boca Raton Community Redevelopment Agency.
In June, Brookfield signed 20 new and renewal leases for nearly 100,000 square feet in the office tower and Mizner Park Plaza Real retail building. The office and retail portions are 90 percent and 96 percent occupied, respectively, according to the offering. The apartment building is 92 percent leased.
The offering, released in October, states Mizner Park’s net operating income could grow 38 percent during the next decade, from $19 million this year to about $25 million in 2032.
A potential buyer has the ability to raise apartment rents because Boca Raton has limited new multifamily projects, despite “an explosive population growth,” the offering states.
On the retail and office side, Mizner Park has about 114,000 square feet available, including a former Lord & Taylor department store that could be leased to a big box tenant. The 80,000-square-foot space could also be redeveloped, the offering states.
Mizner Park’s buyer would be able to capitalize on an influx of visitors and commuters from nearby cities, because of the project’s close proximity to a planned Brightline train station in Boca Raton, said Stefano Santoro with Miami-based Disruptive Real Estate.
“The sale of Mizner Park comes at an opportune time,” said Santoro, who does not represent the seller.
While it’s unclear why Brookfield is looking to shed Mizner Park, the firm has another big commercial property in South Florida that faces financial trouble.
Brookfield’s Pembroke Lakes Mall in Pembroke Pines has experienced a mass exodus of tenants and diminished net cash flow in recent years, prompting a warning from Morningstar last year. Morningstar found that Brookfield could have trouble refinancing a $260 million interest-only loan that is due next year.