Zaragon sells Plantation office building for $16M, a 6% discount from 2018

Zaragon sold an office building in Plantation for $15.7 million, a 5.5 percent discount from the firm’s purchase price six years ago. 

The deal comes as distress continues to trickle across South Florida office properties. The tri-county region experienced a leasing frenzy over the past four years, but office landlords haven’t been spared from the sting of higher interest rates and property insurance. 

Zaragon, a Chicago-based real estate investment firm, sold the two-story 1801 Building at 1801 Northwest 66th Avenue to Mentor, Ohio-based Steris, according to records and real estate database Vizzda. Steris is a health care and life science products and services company. 

The 105,000-square-foot building was completed in 1983 on a 6.2-acre site, Vizzda records show. Zaragon had paid $16.6 million for the property in 2018, taking out a $13.2 million loan from CIBC Bank. 

Tenants at the 1801 Building include insurance broker Pearl Holding Group and insurance agency Jaj Holding. 

The deal marks the latest discounted sale of an office property in suburban South Florida. This month, Singapore-based publicly traded Prime US REIT sold the 10-story One Town Center building in Boca Raton for $82 million, marking a 17.6 percent discount from the firm’s purchase price in 2021. 

In April, Starwood Capital Group sold a Miramar office portfolio consisting of Miramar Centre I and III buildings at 3401 and 3601 Southwest 160th Avenue, as well as the pair of Huntington Centre I and II buildings at 2901 and 2801 Southwest 149th Avenue, for $45 million. The deal marked a 45 percent discount from the portfolio’s last trade in 2015.