Bradford Allen Investment Advisors bought the One Clearlake office tower in West Palm Beach for $45 million, marking a nearly 26 percent discount from its previous sale price four years ago.
Boston-based Rockpoint and its partners sold the 18-story building at 250 South Australian Avenue, according to records and real estate database Vizzda.
Chris Lee and Sean Kelly were part of the CBRE team that represented the seller.
One Clearlake is about 63 percent occupied, according to a Bradford Allen news release announcing the purchase. Tenants include Truist Bank, Ideal Nutrition, employment agency Robert Half and Rubenstein Law Personal Injury Lawyers.
The roughly 222,000-square-foot tower was completed in 1987 on a 2.9-acre site and includes an attached four-story, 669-space garage, property records and Vizzda show.
Chicago-based Bradford Allen plans a $10 million renovation, including of the roof, elevators, conference center, gym, lounge and food services, the release says. The firm also plans to build four spec suites on one floor that are expected to be completed in the fourth quarter.
In 2021, Rockpoint, Tricera, NDT Development, New England Development bought One Clearlake for $60.7 million. Miami-based Tricera is led by Ben Mandell. Palm Beach-based NDT is led by Ned Grace and Boston-based New England Development is led by Stephen R. Karp.
The deal marks Bradford Allen’s second South Florida investment. Led by Jeffrey A. Bernstein and Laurence B. Elbaum, Bradford Allen paid $208 million in February for Las Olas Centre I & II at 350 and 450 East Las Olas Boulevard in downtown Fort Lauderdale.
South Florida offices prospered amid an influx of out-of-state companies from late 2020 through 2022. Over the past two years, the market has felt the sting from elevated interest rates, skyrocketing insurance and a slowdown of leasing, especially by new-to-market firms.
Several office properties sold at a discount in the past year. In September, C-III Capital Partners paid $71 million for the two-building One Park Square at Doral campus at 3470 Northwest 82nd Avenue in Doral, marking a 26 percent discount from its purchase price in 2017.
Also last year, Starwood Capital Group sold a four-building office portfolio in Miramar for $45 million, a 45 percent discount from its purchase price in 2015. The properties are Miramar Centre I and III at 3401 and 3601 Southwest 160th Avenue, as well as Huntington Centre I and II at 2901 and 2801 Southwest 149th Avenue.
In January, Accesso Partners bought the six-story Sawgrass Lake Center at 13450 West Sunrise Boulevard for $36.5 million from Foundry Commercial. The deal was a 36.4 percent discount from the complex’s purchase price in 2018.
Downtown West Palm Beach and nearby areas have largely remained unscathed from office distress. Billionaire Steve Ross, through his Related Ross, has invested in downtown West Palm’s office market, where he has nine office buildings, including those developed, purchased, under construction and planned.
Read more
“Miami has jumped the shark”: Analyzing South Florida’s office sales slump
South Florida’s older, suburban office buildings ripe for deep discounts and conversions: panel
Lone Star Funds, Highline, Square2 buy Bank of America tower in downtown Fort Lauderdale for roughly $220M
