Dealmaker: Avison Young Brokers Two Office Sales Totaling $19M
Avison Young, Toronto, completed two Florida office property sales totaling $19.3 million.
In Plantation, Avison Young Principals David Duckworth, John Crotty and Michael Fay helped Transatlantic Investment Management sell the 80,000-square-foot Bank of America office building at 1776 N. Pine Island Road. The sale represented the fifth transaction the team completed in Plantation this year totaling more than $66 million.
The Kislak Organization, Miami, paid $13.85 million or $173 per square foot for the asset.
“Plantation continues to see low office vacancy rates, high absorption and impressive rent growth, solidifying it as one of the most desirable suburban submarkets in Broward County for tenants and investors,” Duckworth said. He called the property a value-add opportunity despite its high occupancy due to its below-market in-place rents.
Kislak President and CEO Tom Bartelmo said the multi-tenant office building fit his firm’s strategy of acquiring high-quality commercial real estate with strong current income and opportunity for enhancements in top south Florida submarkets.
Avison Young’s Florida Capital Markets Group also secured a $12.05 million loan for the Kislak Organization. Principal George Vail arranged the financing through Popular Bank, New York. The 10-year loan allows interest-only payments for two years, after which it will transition to a 25-year amortization schedule. The interest rate equaled 4.6 percent.
“After receiving multiple term sheets, we locked in a favorable loan with a rare 80 percent loan-to-value ratio, as lenders typically max out at 70 to 75 percent,” Vail said.
Plantation has one of the tightest office submarkets in Broward County, Avison Young’s third quarter market report said. The submarket had no new construction and the highest net absorption level in Broward County during the quarter.
Avison Young also sold Boynton West Professional Centre on behalf of Hews Woolbright, LLC for $5.5 million to TopMed Realty Acquisitions LLC.
The 80 percent leased, 32,600-square-foot value-add medical and professional office property is one-half mile west of Interstate 95 and close to the JFK Medical Center and Bethesda Hospital.
Avison Young Principals Mark Rubin and Gary Gottlieb represented Hews Woolbright. “We secured an aggressive buyer who was attracted to the highly visible and easily accessible location of the property and the potential to lease it up with strong medical tenants,” Rubin said.
