200 East Broward Trades For $81.5 Million

Oct 26, 2017 No Comments by

CBRE has arranged the sale and financing of 200 East Broward, a 226,376 SF, Class A office tower located in the heart of Downtown Fort Lauderdale, according to a deed recorded October 26.

The 21-story building was constructed in 1992 and provides eight stories of podium parking, with office space on floors nine and above.

CBRE’s Miami-based Capital Markets team executed the $81,500,000 sale to Banyan Street Capital in joint venture with funds managed by Oaktree Capital Management, L.P. Additionally, CBRE also arranged the acquisition financing with MetLife on behalf of the purchaser. Vice chairman Christian Lee oversaw the transaction alongside senior vice president José Lobón on the sale and vice president Amy Julian on the financing. The CBRE Capital Markets team representing the seller also included financial analysts Andrew Chilgren and Tyler Ploshnick.

 

“Downtown Fort Lauderdale witnessed an impressive 605,000 square feet of positive net absorption over the last 5 years – more than twice as much as the next highest submarket” commented Christian Lee, CBRE vice chairman. “This was led, in part, by a tremendous migration of tenants from Broward County’s suburban office markets. More than 460,000 square feet of suburban tenants have chosen to relocate to the CBD; despite this trend, vacancies in the suburbs have plummeted 560 basis points since 2011.” added Christian Lee.

 

“Since the seller acquired the property in 2014, rents at 200 East Broward have grown an impressive 43 percent,” explained José Lobón, CBRE senior vice president. “However, despite the building’s 95 percent occupancy, 47 percent rent growth among the competitive set since 2011 has resulted in average contract rents that are 39 percent below market rates, thus offering significant upside potential as leases roll.”

Realty Associates Fund X LP, a real estate investment trust, paid $66.4 million for the downtown office towers at 203 SE First St. and 200 E. Broward Blvd. in July 2014.

200 East Broward is leased to a well-diversified rent roll of 22 tenants and offers 6.6 years of weighted average remaining lease term. 200 East Broward also recently benefited from a $5.7 million capital improvement program, including a transformational lobby renovation in 2016.

 

“The loan with MetLife will provide additional funding for the continued modernization of the building common areas. These enhancements, combined with Banyan Street’s commitment to the Property, will undoubtedly strengthen 200 E Broward’s position in the market,” added Amy Julian, vice president, CBRE Debt & Structured Finance.

Colliers‘ leasing team of Jonathan Kingsley and Jarred Goodstein assisted the CBRE team in marketing the property, as well as Keeley O’Leary of Colliers Property Management.

 

 

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Broward County Office, Industry News, NA, Office
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