Deerfield Beach, FL December 16, 2014 – (RealEstateRama) — CBRE arranged the sale and financing of Quorum Business Center, a best-in-class 408,000-square-foot distribution and office portfolio located just south of Boca Raton in the Deerfield Beach submarket of Fort Lauderdale. Quorum Business Center, which is strategically located at the intersection of SW 10th Street and Military Trail and just west of Interstate 95, was acquired for $51 million, by Ivy Realty of Greenwich, Connecticut, from KTR Capital Partners of New York, New York. Quorum was 87% occupied at the time of acquisition.
“The Broward industrial market is moving at a rapid pace, and Quorum is no exception. There has been 104,876 square feet of leasing activity at the property in 2014 year to date, with 82% of this activity representing new deals,” explained José Lobón, CBRE Senior Associate. “In the five months since the property was initially underwritten through closing, occupancy has increased 500 bps and market rents have risen between $0.25 to $0.50 per square foot.”
“Most of the investor interest surrounding Quorum was driven by its outstanding and strategic location. There is a reason Publix put a distribution center across from the property. The site is centrally situated between the population base of Broward and Palm Beach counties, placing it within a 30-minute drive of 1.3 million people and within 60 minutes of 4.2 million,” added Christian Lee, CBRE Vice Chairman.
KTR acquired Quorum Business Center in October 2005. Since then, KTR has executed 154 leases and injected nearly $4.5 million in tenant improvements into the space. With 3 years of average remaining lease term at disposition, KTR positioned the property to market for sale in light of the strengthening Broward County industrial market.
“Ivy is thrilled to cross the 1 million square foot mark in Southeast Florida with this latest acquisition,” remarked Roy Rosenbaum, Vice President of Investments for Ivy Realty. “Quorum represented the rare opportunity to acquire a Class A property with both strong in-place cash flow as well as significant upside potential given the rapidly growing market and the property’s excellent location and access characteristics,” said Mr. Lee.
The Miami-based CBRE team representing the seller included Christian Lee, Vice Chairman, and José Lobón, Senior Associate, with CBRE Capital Markets, Institutional Properties; and Charles Foschini, Vice Chairman, and Chris Apone, First Vice President, with CBRE Debt & Structured Finance. Tom O’Loughlin, CBRE First Vice President of Industrial Leasing, assisted the CBRE team with market leasing.
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.
About Ivy Realty
Ivy Realty, www.ivy-realty.com, is a fully integrated real estate operating company with over 5 million square feet of commercial property investments. The firm offers asset and property management, construction and leasing services in the Northeastern corridor of the U.S., including New York and New Jersey, and in Southeast Florida. The firm is headquartered in Greenwich, Connecticut.
About KTR Capital Partners
KTR Capital Partners is a real estate investment, development and operating company focused exclusively on the industrial property sector. Headquartered in New York City with offices in Philadelphia, Chicago, Dallas, Las Vegas, Los Angeles, Miami and Seattle, KTR has an 88 person platform that manages a series of discretionary value-add investment funds that target opportunities throughout major markets in North America. KTR funds currently own a portfolio of approximately 65 million square feet across North America and provide nearly $7.0 billion of investment capacity. For additional information, please visit www.ktrcapital.com.
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