Dealmaker: IPA Arranges $142M for Office, Multifamily

Institutional Property Advisors, Calabasas, Calif., arranged $142.15 million for office and multifamily transactions in Florida, California and Arizona.

In Boca Raton, Fla., IPA arranged sale of the 851 Building, a 60,000-square-foot office building. The property sold for $13.8 million, or $228 per square foot.

Located in The Park at Broken Sound, the 851 Building is a newly renovated property that “provides the buyer with upside through increasing rental rates and occupancy,” said Douglas K. Mandel, IPA executive managing director. Eighty percent occupied at the time of the sale, the building is supported by the submarket’s strong demographics, including annual average household income of $118,000 within a three-mile radius.

Mandel, Kuhlman and Zachary Levine represented the seller, Malcolm Butters, president of South Florida-based Butters Construction and Development, and procured the buyer, Blair Rolnick.

“In 2012, The Park at Broken Sound was re-zoned for Planned Mobility and there are now luxury apartment and townhome developments completed and several more underway,” Mandel said. “Given the number of properties that have been redeveloped within the park over the past several years and the 851 Building’s five-acre footprint, we positioned the asset as a covered land play.”

The 851 Building has frontage along Broken Sound Parkway and is one mile from Interstate 95, which provides access to the surrounding area and destinations throughout South Florida. The Boca Raton Station of the Tri-Rail system, South Florida’s 71-mile commuter train system that runs from West Palm Beach to Miami is also a mile away. Florida’s Turnpike, Boca Raton Airport, Palm Beach International Airport and Fort Lauderdale International Airport are nearby. Major companies in the area include Tyco, ADT, Canon, and Office Depot. There are many retail, dining, hotel and entertainment options close by, including the 1.5 million-square- foot Town Center Mall.

Built in 1987 on five acres and renovated in 2016, the two-story 851 Building has portico entryways, a courtyard, and 208 parking spaces, including 10 that are awning-covered. Suites available for lease are ready to rent and range from 650 square feet to 7,850 square feet.

In San Diego, IPA arranged sale of Studios 435, a 86-unit apartment asset. The property sold for $23.25 million, or $270,349 per unit.

Christopher J. Zorbas, IPA executive managing director investments, represented the seller along with Alexander Garcia Jr.; Marcus & Millichap’s Austin Huffman represented the seller, an affiliate of FPA, and procured the buyer, Insight Investment Partners.

Garcia noted in the past five years, only 10 of the 121 buildings over 50 units in this zip code have traded hands. Annual rent growth in the area, led by luxury and mid-tier inventory, has reached 10.1%.

Studios 435 is located one mile from outdoor entertainment venue Horton Plaza, which is undergoing a $330 million redevelopment in East Village, the largest urban neighborhood in Downtown San Diego. East Village encompasses 130 blocks, has a growing community of 40,000-plus residents, proximity to Petco Park, rooftop bars, cafes, restaurants, galleries, and hotels. The neighborhood has a high walkability score, an excellent transit system, and is close to the Gaslamp Quarter, Balboa Park, Little Italy and the San Diego Convention Center.

Built in 1990, Studios 435 consists of two four-story buildings on opposite sides of 13th Street with units ranging in size from 188-336 square feet. Although the community does not provide parking, it does boast a full range of amenities including several gathering spaces, a lobby/clubhouse, community-wide Wi-Fi, and an indoor/outdoor fitness center. Apartments have European cabinetry, stainless-steel appliances, built-in Murphy beds and smart-home features. Select units have balconies.

In Mesa, Ariz., IPA arranged sale of Cabana Power, a newly built, 244-unit multifamily asset. The $84 million sales price represents $344,262 per unit.

Steve Gebing, IPA executive managing director, and IPA executive managing director Cliff David represented the seller, Greenlight Communities, and procured the buyer.

Cabana Power is located along the border between Mesa and Gilbert, surrounded by the Gateway Employment Area and near Mesa’s emerging Elliot Road Technology Corridor. Nearby Loop 202/SanTan Freeway gives residents access to 18,000 businesses within the Chandler Airpark Area, Price Corridor, Falcon Field Airport and the Fiesta DistrictThe Phoenix-Mesa Gateway Airport is nearby, and Gilbert’s central business district is just five miles from the property.

Completed in 2022, Cabana Power floorplans have nine-foot ceilings, eight-foot entry doors with keyless entry, smart thermostats and large heat-reflecting windows. Select floor plans contain built-in workstation desks and full-size, front-loading washers and dryers. The controlled access-gated community has a leasing office and clubhouse, co-working space, and two laundry rooms. Outside amenities include a resort-style swimming pool, Zen gardens, a multipurpose event lawn and outdoor fitness circuits.

Also in Arizona, IPA arranged sale of Equinox on Prince, a 114-unit multifamily asset in Tucson. The property sold for $21.1 million, or $185,088 per unit.

Clint Wadlund, IPA senior director, and IPA’s Hamid Panahi, Steve Gebing and Cliff David represented the seller, Waahe Capital, and procured the buyer, Vertical Street Ventures.

Equinox on Prince is located in Central Tucson near Campbell Avenue, which provides quick access to Banner University Medical Center and the University of Arizona. The nearby Prince Road retail corridor gives residents immediate proximity to grocery, dining, and entertainment options. More than 20,000 jobs and nearly 825 employers are situated within a five-mile radius of the property.

Built in 1964 on nearly five acres, the property is a 23-residential building complex with two swimming pools, a playground, dog park and laundry facilities. Upgraded unit interiors have white Shaker-style cabinets, stainless steel appliances and spacious closets. Select apartments have balconies and backyards. The average unit size is 654 square feet.