CBRE CLOSES $8.8 MILLION SALE OF WEST PALM BEACH MEDICAL AND PROFESSIONAL OFFICE PARK
CBRE arranged $7M bridge loan for acquisition of Metrocentre Corporate Park
West Palm Beach, FL – December 22, 2014 – (RealEstateRama) — CBRE arranged the sale and financing of an office portfolio consisting of six single-story medical and professional buildings on 10.61 acres in West Palm Beach, Florida. Metrocentre Corporate Park at 2500-2581 and 2440-2478 Metrocentre Boulevard was acquired from General Electric Credit Equities, Inc. for $8.825 million by Grover & Corlew, LLC. CBRE marketed the property on behalf of the seller. For the buyer, CBRE arranged a non-recourse bridge loan in the amount of $7 million from a mortgage REIT in excess of 75% of cost at an attractive, low interest rate.
“Located in a meticulously groomed business campus, this 55% occupied property presented investors with a value-add opportunity to own a critical mass of strategically located, high-quality, single-story office product below replacement cost,” said Scott O’Donnell, Senior Vice President, with CBRE Investment Properties. “From 2003 to 2006, prior to the recession, the property had an average year-end occupancy rate of 95.7%. With recent gains in housing prices and employment, the economy is positioned to further improve and there is a tremendous value-add opportunity to lease up the vacant suites and benefit from the impressive market rental growth projected by economists.”
Added Vice President Jason Hochman of CBRE Debt & Structured Finance, “The lender we chose worked closely with our client to maneuver the intricacies of this transaction and close on time. They had underwritten the property while it was marketed and were prepared to move quickly when selected as a lender for the acquisition. Proceeds were provided for the acquisition with future funding for leasing and improvement costs.”
The office portfolio spans 105,159 square feet in a master-planned corporate park setting in central Palm Beach County immediately west of an I-95 interchange, with frontage and visibility along heavily traveled 45th Street.
In addition to Mr. O’Donnell and Mr. Hochman, Dominic Montazemi and Miguel Alcivar of CBRE Investment Properties arranged the transaction.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2013 revenue). The Company has approximately 44,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through approximately 350 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.
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