Lake Worth, FL – March 12, 2015 – (RealEstateRama) — CBRE arranged the sale of Concept 2 Towers, two six-story medical office towers encompassing 101,136 square feet at 2290 and 2328 10th Avenue North in Lake Worth, Florida. Concept 2 Towers was acquired by KAS Datura LLC for $8.6 million. CBRE represented the seller, CD Parking, Inc.
“As this asset is one of an increasingly limited number of true value add-offerings available today, the buyer intends to reposition it primarily through capital investment into common areas and tenant build-outs to expedite space absorption at increased rental rates,” said Senior Vice President Scott O’Donnell of CBRE Investment Properties. “This particular buyer has been successful at doing this at other properties many times during the past three years.”
Added CBRE First Vice President Dominic Montazemi, “The steadily improving Palm Beach office market is poised for even stronger rent growth, as much as 38 percent over the next six years. The new owner can expect to collect a solid return from an aggressive lease-up campaign.”
Just west of Interstate 95 and within three miles of the JFK Medical Center, Concept 2 Towers is 77% leased to a diverse mix of tenants, including the Palm Beach Spine Diagnostic Institute, Florida Open Imaging Centers and Praesum Healthcare Services.
The buildings constructed in 1983 and 1986 have undergone $350,000 in improvements over the past several years, including upgrades of ADA-compliant restrooms and a sprinkler system. Additional features include prime bank space with drive-thru lanes, efficient floor plates with plenty of natural light and expansive views of the Florida landscape, and the potential to build an outparcel of up to 6,200 square feet.
Mr. O’Donnell, Mr. Montazemi and Miguel Alcivar, together with Jason Hochman of CBRE Debt & Structured Finance, collaborated in arranging 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 2014 revenue). The Company has more than 52,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 370 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.