Related, Pebb and BH plot Boca’s Office Depot campus redevelopment
JV seeks city approval for 500 residential units and 42K sf retail
The Related Group is teaming up with Pebb Enterprises and BH Group to redevelop a slice of the Office Depot campus in Boca Raton.
The joint venture this week submitted a site plan to the city of Boca Raton that shows one of three office buildings on the 29-acre site would be replaced by a nine-story, mixed-use building with 500 residential units and 42,000 square feet of retail.
In April, Boca Raton-based Pebb and Aventura-based BH paid $104 million for the 651,000-square-foot complex at 6600 North Military Trail. Related recently joined as a partner, said Isaac Toledano, who, along with his wife Liat, leads BH.
Pebb is run by CEO Ian Weiner and Related is led by chairman Jorge Pérez and his sons Nick and Jon Paul.
“While we have Office Depot committed to a long-term lease and they have chosen to continue to keep this location as their headquarters, BH and Pebb decided to bring Related on board to help us create a genuine town center,” Toledano said in a statement. “Boca Raton’s market is in need of more quality residential projects.”
The office building targeted for demolition is roughly 215,000 square feet. The two other office buildings, spanning 400,000 square feet, and a parking garage would remain intact, according to a person with knowledge of the plans. Office Depot currently has a five-year lease for 300,000 square feet.
Designed by Miami-based Arcadis, the mixed-use building would include one-, two- and three-bedroom units overlooking Broken Sound Country Club’s golf course in the Park at Broken Sound, the site plan shows. Toledano said the joint venture has not decided if the building will be condos or apartments.
Office Depot has been the property’s main tenant since 2008. The national retailer paid $132 million for the campus in 2017, six years before it would sell to Pebb and BH for $28 million off its purchase price.
Pebb and BH are also partnering with Chicago-based developer John Buck and Miami-based Florida Value Partners to build a proposed 41-story mixed-use tower in downtown Miami. The partnership paid $39.5 million for a 1-acre redevelopment site at 525 and 533 Northwest Second Avenue.
BH is also partnering with Related on several projects across South Florida. The joint venture recently paid $21.5 million for the second of two development sites adjacent to the Diplomat Beach Resort. Related and BH are proposing a 42-story condo-hotel branded by Hilton.
In August, the joint venture dropped $30 million for the other site where Related and BH are planning a 38-story high-rise with 350 condos.