In a sign that office properties in South Florida suburbs are bargain deals, Galium Capital acquired a five-story building in Sunrise for $17 million, roughly half the previous sale price nearly a decade ago.
An affiliate of Miami-based Galium, led by managing partners Jacques Bessoudo and Iser Rabinovitz, bought Lake Shore Plaza II at 1300 Concord Terrace, records and real estate database Vizzda show. The buyer obtained a $5.5 million mortgage from New Wave Loans.
The deal breaks down to $132 a square foot for the 128,500-square-foot building completed in 2008.
A CBRE team led by Chris Lee and Sean Kelly, and a Blanca Commercial Real Estate team led by Chris Gallagher and Christina Stine Jolley represented the seller, Barings Real Estate.
An affiliate of Barings, a global investment management firm based in Boston and subsidiary of MassMutual Financial Group, paid $32 million for the 8.9-acre site in 2013, records show.
The brokers declined to comment on why Barings decided to sell the building at a loss. A Barings spokesperson did not respond to an email requesting comment.
Galium is planning upgrades to Lake Shore Plaza II to “further enhance the tenant experience and boost the property’s appeal,” a press release states. The company did not disclose how much the upgrades will cost. Blanca Commercial, which has been handling leasing for the building, will remain as the broker. The building is 50 percent occupied, a Blanca Commercial spokesperson said.
Founded in 2017, Galium has more than $600 million in commercial real estate assets under management, focusing on office, multifamily and retail properties, the firm’s website states. In South Florida, the firm owns Palm Square, an office and retail center in Pembroke Pines, and 3001 PGA Boulevard, an office building in Palm Beach Gardens. Its portfolio is spread across the U.S., the website shows.
Barings is the latest major institutional investor to take a big hit offloading a suburban South Florida office property. In April, Barry Sternlicht’s Miami Beach-based Starwood Capital Group sold an office portfolio in Miramar at a 45 percent discount from its purchase price nine years ago.
YMP Real Estate Management and Nathan Pollack paid $45 million for a quartet of office buildings that Starwood acquired for $82 million in 2015, records show.