CBRE arranged the sale and financing of an eight-story office tower and parking garage, located along the vibrant Palm Beach Lakes Boulevard corridor in West Palm Beach, Florida. The 64,247-square-foot Horizons Office Building at 1401 Forum Way was acquired from Pebb Forum, LLC by AW Horizons LLC for $10.2 million. CBRE represented the seller, and also arranged financing on behalf of the buyer.
“This sale clearly represented a win-win scenario, with the seller having successfully completed a textbook repositioning of a distressed asset, culminating in the stabilized sale of a completely renovated Class A tower to a buyer who recognized the upward trajectory in both rental rates and tenant demand,” said CBRE’s Scott O’Donnell, Senior Vice President, CBRE Investment Properties. “The Palm Beach Lakes corridor has experienced a renaissance over the past couple of years with the most visible change being the new Palm Beach Outlets replacing the dilapidated and mostly vacated Palm Beach Mall.”
CBRE’s Jason Hochman arranged $7.95 million in CMBS financing for the acquisition on behalf of the new owner. The non-recourse loan has a ten year term and several years of interest only payments.
“After going to the market, we selected a lender who offered a loan at almost 78% of the purchase price with several years of interest only payments. With a well occupied asset such as this one, our client should recognize strong cash on cash returns for years to come,” said Jason Hochman, Vice President at CBRE’s Debt & Structured Finance group.
Situated on 1.52± acres, Horizons Office Building has benefited from an aggressive, million dollar capital investment campaign implemented since its purchase three years ago. The well-located, infill office asset is located near a wealth of first-class amenities, three courthouses, and I-95, and offers panoramic views of Clear Lake, downtown West Palm Beach and the President Country Club.
CBRE’s Dominic Montazemi, Miguel Alcivar, Greg Miller and Anthony Librizzi collaborated with Mr. O’Donnell in representing the seller. Mr. Hochman represented the buyer in obtaining the financing.
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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 2014 revenue). The Company has more than 52,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 370 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 website at www.cbre.com.
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