Miami Firm Picks Up Pricey Fort Lauderdale Office Building for $81.5 Million
In conjunction with Oaktree Capital Management, Banyan Street Capital purchased the building for $81.5 million, marking a 13 percent return on investment for Realty Associates Fund X LP, an affiliate of Boston-based TA Realty. Realty Associates purchased the 225,650-square-foot, Class A building in 2014 for $66.4 million. Their $5.7 million renovation was Energy Star-rated and provided interior updates to the 1992-built structure.
The sale works out to a purchase price of $360 per square foot for the 21-story building, which features eight stories of parking, retail and bank space on the lower floors, and 12 floors of office space at the corner of Broward Boulevard and SE 3rd Avenue.
Currently, the building is 95 percent least to 22 tenants, according to CBRE. Although rents have grown by 43 percent, they are still 39 percent below market value. Current tenants have an average of seven years left on their leases. The purchase marks the first major sale in Fort Lauderdale in months.