Lennox Industries bought an office building in Fort Lauderdale for $16 million, with plans to open its Southeast U.S. headquarters.
Richardson, Texas-based Lennox, which provides climate control services to residential and commercial properties, purchased the 30,000-square-foot building at 2001 South Andrews Avenue, according to records and real estate database Vizzda. Aside from its regional headquarters, Lennox plans to establish a training center at the property, according to a news release from the seller’s broker.
Lennox is led by CEO Alok Maskara.
The seller is an entity tied to Health Network One, a network manager for outpatient therapy, routine vision, medical eye care, dermatology and podiatry.
Steve Hyatt of Berger Commercial Realty represented the seller. Christopher Dubberly and Michael Meaden were part of the CBRE team that represented the buyer.
Health Network One paid $2.2 million for the property in 2012, according to records. The one-story building was completed in 1949, and Health Network One gut renovated it in 2014, the Berger Commercial release says. The building previously was a distribution center for Hughes Supply Company.
“We expected the highest offer to come from a developer,” Hyatt said, adding that the property’s move-in ready condition made it appealing for an end user.
South Florida’s office market boomed during the first three years of the pandemic, and has calmed more recently due to elevated interest rates, suppressed values and a slower influx of out-of-state companies. Generally, two types of office properties –– medical offices and user-owned buildings –– have continued to trade and have remained resilient to a market slowdown, experts have said.
Still, downtown Fort Lauderdale scored two trophy office tower sales in the first quarter. Bradford Allen Investment Advisors paid $208 million for the Las Olas Centre I & II at 350 and 450 East Las Olas Boulevard. Also, Lone Star Funds, through its real estate fund VII, and Highline Real Estate Capital and Square2 Capital bought the 23-story Bank of America Plaza at Las Olas City Centre building at 401 East Las Olas Boulevard for $220 million.
All-cash deals have been more common amid the higher interest rate environment. Spanish billionaire Amancio Ortega is under a $275 million contract for the 30-story Sabadell Financial Center at 1111 Brickell Avenue in Miami’s Brickell.
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