BOCA RATON, Fla.--(BUSINESS WIRE)--KBS, one of the largest investors in commercial real estate, announced today that the company assisted in the acquisition of One Town Center, a 191,294 square-foot Class A office building in Boca Raton, Florida. The property was acquired from a joint venture between prominent commercial real estate firm CP Group, formerly Crocker Partners, and Siguler Guff & Co. for $99.5 million by Prime US REIT (PRIME), which trades on the Singapore Exchange Securities Trading Limits ticker as: OXMU. KBS serves as the U.S.-based asset manager for the portfolio, which included identifying and sourcing this asset on PRIME’s behalf. One Town Center is a Class A property consisting of a 10-story office building and an adjacent parking deck. CP Group has been retained as on-site property management.
“This is one of three acquisitions for the portfolio since listing on the Singapore Exchange in 2019,” says Marc DeLuca, Eastern regional president for KBS. “Acquiring One Town Center marks another strategic investment into a prime location and a premier asset. At 95% occupancy, One Town Center is one of the most desirable office properties in the Boca Raton market with strong in-place cash flow and a diverse base of creditworthy tenants.”
Boca Raton is increasingly drawing in residents due to its proximity to Fort Lauderdale and West Palm Beach, appealing climate and lifestyle, lower taxes and relative affordability, adds DeLuca. “Palm Beach County has seen a higher-than-normal influx of new residents as a result of the pandemic, and Boca Raton has become one of the nation’s most attractive markets for wealthy decision makers,” says DeLuca. “Companies such as Elliott Management, Citadel and Moelis have been encouraged to open satellite offices in Florida or allow their employees to be based there, and office tenants are drawn to the Boca Raton West submarket for its high connectivity, surrounding residential areas and access to great talent.”
According to Newmark, leasing activity was up 29% from deals seen a year ago and South Florida’s unemployment rate fell to 6.3% during the first quarter of 2021, with Palm Beach County, where Boca Raton is located, remaining the lowest unemployment rate in the region at 4.5%.
Boca Raton’s office market also features significant barriers to entry with prohibitive construction costs and no buildings currently under construction.
As one of the premier office properties in Boca Raton, One Town Center is a 10-story building with an adjacent 435-space parking garage and 274 surface parking spaces, resulting in a parking ratio of 3.7 per 1,000 square feet. The property is well positioned in the Midtown Boca Raton corridor, close to upscale executive housing and 1.2 miles from I-95. The asset also features close proximity to Florida’s Turnpike, the Boca Raton Airport, executive country clubs and housing communities, hotels and retail and dining options.
“KBS worked with PRIME to acquire a top-quality, well-located asset in a growing submarket of one of the strongest regions in the country,” says Allen Aldridge, asset manager for One Town Center and senior vice president of KBS. “This acquisition, which is within a five-minute stroll of 2.1 million square feet of dining and retail options, is in the best location in Midtown Boca Raton. It gives us another opportunity to apply our hands-on management strategy to deliver best-in-class, well-amenitized office space and services that exceed tenants’ expectations.”
Built in 1991 by Thomas Crocker, One Town Center features one of the two tallest buildings in the market. The property offers a plethora of on-site amenities including a high-end café, a restaurant, a fitness center and upgraded landscaping. The building is also within walking distance of numerous dining, shopping, fitness, salon and hotel amenities, with additional amenities accessible within a short drive. One of the most notable walkable amenities is the Town Center at Boca Raton, South Florida’s third-largest mall.
KBS is planning to implement several upgrades to the property, including a lobby refresh, restroom renovations, front-entry enhancements, building out a management office, updating the fitness center and locker rooms, and bringing vacant suites up to spec suite condition.
Chris Lee, vice chairman and Jose Lobón, executive vice president of CBRE brokered the sales transaction.
“KBS once again leveraged its deep understanding of the market and relevant fundamentals to purchase one of the most sought-after high-quality office towers in the South Florida market,” says Lee.
Attorneys Bruce Fischer, Tatyana Litovsky, Chrisdo Fan and Howard Chu, and paralegal Amanda Kennedy, of global law firm Greenberg Traurig, LLP’s Orange County office, attorney Jody Saltzman in Greenberg Traurig’s New Jersey office, and attorney Steven Landy in Greenberg Traurig’s Miami office, represented PRIME as legal counsel in the acquisition.
“We were very pleased to represent KBS in this significant strategic transaction on behalf of PRIME,” says Fischer, Greenberg Traurig’s Chair of the West Coast Real Estate Practice and Co-Managing Shareholder of the Orange County office, who led the Greenberg Traurig team and represented KBS.
One Town Center is located at One Town Center Road in Boca Raton, Florida.
Please click here for photos of One Town Center.
KBS is one of the largest investors of premier commercial real estate in the nation. As a private equity real estate company and an SEC-registered investment adviser, KBS and its affiliated companies have completed transactional activity of more than $43 billion on behalf of private and institutional investors globally. Founded in 1992 by Peter Bren and Chuck Schreiber, KBS acquires and operates prime commercial real estate in some of the most successful epicenters in the country. The firm is committed in its business ethics, its business relationships and its constant focus on exceeding the expectations of its investors, partners and tenants. SEC registration as an investment advisor does not imply any particular level of skill or training. For more information on KBS, please visit www.kbs.com.
This release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements relating to KBS’ ability to invest in and manage a diverse portfolio, and the performance of One Town Center and of the Boca Raton, Florida real estate market. These statements are subject to known and unknown risks, uncertainties and other factors which may cause KBS’ and/or One Town Center’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.
ABOUT CP GROUP
Active in the commercial real estate business for over 35 years, CP Group, formerly Crocker Partners, has established a reputation as a premier owner, operator, and developer of office and mixed-use projects throughout the Southeast and Southwest United States. Since 1986, CP Group has acquired and managed over 158 properties, totaling 50 million square feet and representing over $6 billion invested. They are currently Florida's largest and Atlanta's second-largest office landlord and rank 34th largest in the United States. Headquartered in Boca Raton, Florida, they have regional offices in Atlanta, Miami, Jacksonville, Dallas, and Washington DC. To learn more about the company, visit CPGcre.com.