Owens Realty Capital and Galium Capital sold the Seacoast Banking Centre building in Palm Beach Gardens for $30.3 million.
The deal comes at a time of slower office investment sales in South Florida, amid elevated interest rates, doubts over the market’s viability and other headwinds.
Owens Realty Capital, a subsidiary of Orlando-based Owens Realty Services, and Miami-based Galium sold the property at 3001 PGA Boulevard to Andiamo Capital, according to an Owens news release. Andiamo, which is different from blockchain venture fund with the same name, is tied to a family office, a source said.
This was an off-market deal.
The three-story, 70,700-square-foot building was completed in 2006 on a 5.6-acre lot, records show. Owens and Galium had paid $25.1 million for the property in 2018.
Tenants include Seacoast Bank, public relations firm McNicholas & Associates and financial consultant Janney Montgomery Scott.
Owens Realty is led by CEO Bob Owens. Galium is led by managing partners Jacques Bessoudo and Iser Rabinovitz.
South Florida’s office market prospered from late 2020 through 2022 due to an influx of out-of-state companies. Among them, billionaire hedge funder Ken Griffin moved his Citadel and Citadel Securities headquarters from Chicago to Miami’s Brickell Financial District.
The demand prompted a leasing spree and record rents that reached $200 per square foot at prime new office projects. Yet, it hasn’t translated to robust investment sales due to the Federal Reserve’s 11 aggressive interest rate hikes in 2022 and last year. Other expenses increased as well, including insurance premiums.
The bid-ask gap stopped deals from closing, as buyers faced with higher financing costs couldn’t meet sellers’ price expectations for their well-leased buildings.
Suburban properties have sometimes proven to be a bargain. In September, Galium dropped $17 million for the Lake Shore Plaza II at 1300 Concord Terrace. The price was roughly half the property had traded for a decade ago. In August, Lauderdale Lakes-based YMP Real Estate paid $26 million for Commercial Place I and II at 3230 and 3250 West Commercial Boulevard in Oakland Park.