Titan General Affiliate Sells Boca Raton Plaza to Interface

A family firm bought a 15-acre retail and office complex near Boca Raton for $40 million, amid softer South Florida commercial real estate deal activity.

Interface Properties, a Boca Raton-based firm led by Zac and Ken Goodman, purchased the 189,500-square-foot Fountains Center at Powerline Road and West Camino Real, using a $31.8 million acquisition loan from City National Bank, according to news releases from the buyer and debt broker. The financing has a fixed interest rate and a five-year term.

The seller is an entity led by James Caprio of Weston-based Titan General Partners, records show.

The $40 million purchase price was reported by the South Florida Business Journal, citing a source familiar with the deal. The Real Deal confirmed the price.

The sale breaks down to $2.7 million per acre and $211 per square foot.

Nelson Garcia of RARE CRE represented the seller, and Michael Basinski and Mitch Sinberg of Berkadia Boca Raton arranged the financing.

Fountains Center, completed in phases from 1980 to 1990, consists of seven buildings that are 95 percent leased, with the majority –– about 54 percent –– leased to medical office tenants, according to the releases. Tenants include Citi Bank, Truist Bank, University of Miami Miller School of Medicine, Salt Academy, restaurant Traditions South and independent health care providers.

The campus has additional land with approvals for a 21,000-square-foot office building.

Interface plans a multimillion renovation, including landscaping, façades and fountains, the buyer’s news release says.

The sale comes after Titan General offloaded a Boca Raton portfolio of three office and retail properties for $92.7 million in February.

Interface, founded in 1990, invests across commercial properties, including multifamily, retail, office, hospitality and industrial, according to its website. Its transaction volume totals about $1.2 billion across 24 states during its history.

South Florida commercial deal volume dropped off during the first quarter, when it was down 23 percent from the same time period last year and 11 percent from the first quarter average since 2017, according to CoStar Group. The dip came amid macroeconomic pressures, including the Iran War, skyrocketing oil prices and uncertainty over tariffs and the future. Expectations for more interest rate cuts this year also are bleaker, and some asset classes, including multifamily, are experiencing downward pressure on values.

While buyers generally still are open to investing, many sellers aren’t too keen to let go of their properties amid higher cap rates, experts have told TRD. Some, though, are forced to sell as they face looming debt maturities, higher interest rates and a harder time refinancing.

In some recent deals, Terminal Wynwood, managed by Ismail Murat Ozcan and Kayril Karabeyoglu, bought a five-lot assemblage with a 23,200-square-foot office building in Miami for $14.5 million last month, a 23 percent discount from its 2022 price. The site is at the intersection of Wynwood, Edgewater and Midtown Miami.

Still, a Sunny Isles Beach resort traded last month for a 308 percent to 410 percent gain from its 2021 price. South Street Partners bought the 249-key Solé Miami, a Noble House Resort at an oceanfront condo-hotel, for between $20 million and $25 million from Mast Capital.