CBRE ARRANGES SALE AND FINANCING FOR
JUPITER MEDICAL AND TECHNOLOGY PARK
Jupiter, FL – January 7, 2014 – CBRE arranged the sale and financing of the Jupiter Medical and Technology Park at 1701 Military Trail in Jupiter, Florida. The seller, Jupiter RE Investments, LLC, the real estate holding company affiliated with Florida Turbine Technologies, which occupies 34% of the medical/office campus, retained CBRE’s leasing, investment sales and debt financing professionals in the disposition of the 185,000-square-foot asset. POH Jupiter Ownership, LLC, of Hollywood, Florida, acquired the property for $30.7 million after securing a $24 million loan. The property was 92% occupied at the time of the sale.
Jupiter RE Investments, LLC, which purchased the property in 2005, made the strategic decision to exit the real estate management arena and reinvest the equity it had invested in real estate into its expanding global business.
“The challenge for us, given a capital market environment where institutional equity is generally focused on CBD assets, was to identify a well-capitalized private equity firm willing to aggressively pursue a stable suburban office asset in a secondary, but burgeoning office/life sciences market,” said Scott O’Donnell, Senior Vice President with CBRE’s Private Capital Group in Boca Raton. “The well-capitalized private buyer had been targeting larger assets presently deemed ‘non-institutional’ that will offer a future institutional exit as the capital markets evolve and the Jupiter submarket matures.”
CBRE also arranged $26 million in financing for the buyer, provided by RAIT Financial Trust, a Philadelphia-based REIT and bridge lender.
“This was a challenging deal to finance because there was a large amount of excess land that was not entitled, but potentially had value separate and apart from the building, which was well-leased and producing a strong consistent income,” said Charles Foschini, Vice Chairman with CBRE’s Debt and Equity Finance group. “We needed to secure a flexible lender who would focus on the value of the income property for the loan but also allow the borrower to explore the value of the land at a future date. RAIT’s approach was uniquely crafted and allowed for exploration of that business plan.”
Built in 1990 for Marquette Electronics, later acquired by GE Medical Systems (GEMS), Jupiter Medical & Technology Park is a well-maintained, high-quality corporate campus-style property on 16 acres. It is strategically located less than one mile from the 283-bed Jupiter Medical Center and within Jupiter’s active and growing life sciences hub. The property currently has four tenants, with nearly half of the building still occupied by GEMS, a subsidiary of GE Healthcare, a Fortune 100 company.
The CBRE professionals involved in this transaction included Scott O’Donnell, Dominic Montazemi and Miguel Alcivar, all with CBRE’s Private Capital Group; Christian Lee with CBRE’s Capital Markets Institutional Group; Robert Smith, with CBRE industrial/office brokerage team; and Charles Foschini and Jason Hochman, with CBRE’s Debt and Equity Finance group.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2012 revenue). The Company has approximately 37,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 300 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our Web site at www.cbre.com.
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