Related Ross picked up a Boca Raton office property for $64 million, marking billionaire Stephen Ross’ second office acquisition in the city.
The developer bought North 40, two office buildings at 5201 Congress Avenue and 901 Yamato Road, from Fort Lauderdale-based Mainstreet Capital Partners and private equity firm Partners Group. The two office buildings at 5201 Congress Avenue are located across Yamato Road from the Boca Raton Innovation Campus, or BRiC, which Related Ross acquired in September.
“North 40’s location next to BRiC makes it a natural complement to the campus and an important part of our long-term commitment to Boca Raton,” Jordan Bargas, executive vice president at Related Ross, said in a statement to TRD.
The new acquisition spans 354,380 square feet of offices on 23.1 acres. The buildings were completed in 1983 and 1984 and renovated in the past decade. They’re located in the Park at Broken Sound, formerly known as the Arvida Park of Commerce, a 700-acre mixed-use community undergoing major redevelopment.
JLL’s Hermen Rodriguez, Matt McCormack and Ike Ojala represented the sellers. The deal worked out to about $181 per square foot.
The property last traded hands in 2019 for $68.4 million, according to public records, meaning it sold at a loss in the latest transaction. Mainstreet bought the site in 2015, according to the company’s website.
The property is 74 percent leased, and its tenants include online marketplace Flex Shopper and Cross Country Healthcare.
The purchase solidifies Related Ross’ expansion south of West Palm Beach. The developer owns more than 2 billion square feet of offices in West Palm.
The developer picked up the 124-acre BRiC property, the former Boca IBM campus, for an undisclosed amount last month. Management of the LLC that owns the property transferred to Related Ross last month, but a deed hasn’t been recorded. Ares Commercial Real Estate Services provided the buyer a $463.8 million loan, according to records.
Mainstreet was founded in 1999 by managing partner Paul J. Kilgallon. Its investments total more than $1 billion, according to its website.
Other developments planned for the Park at Broken Sound include two residential buildings from Compson Associates, Pebb and BH Group’s mixed-use redevelopment of the former Office Depot headquarters and Butters Group’s industrial complex.
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