A three-building office campus in Boca Raton’s Boca Center, with tenants including global banks and Big 4 accounting firms, is up for sale with an estimated deal size of $200 million.
New York-based Macquarie Capital listed the 379,000-square-foot Class A complex, which includes 5200 Town Center Circle, 5100 Town Center Circle and 1800 North Military Trail, with Newmark’s Adam Spies, Josh King, Avery Silverstein and Ben Lushing representing the seller.
A sale at $200 million works out to $528 per square foot.
The property is 86 percent leased overall, and the Town Center Circle buildings are 98 percent leased. The third building is 68 percent occupied but has 46,000 square feet of remaining or near-term vacancy. Leasing that space could generate roughly $2.4 million in additional annual base rent, Newmark projected.
Major tenants at the complex include JPMorgan, PwC, Ernst & Young, UBS, FINRA and AMN Healthcare. In-place rents average about 22 percent below market, according to Newmark, creating an opportunity to increase annual base rental revenue by an estimated $3.8 million.
The property is within Boca Center, which includes more than 50 restaurants, 100 retailers and the 260-room Boca Center Marriott. It is within a mile radius of the 294-unit Live Local Act apartment project Nuvo Midtown Boca developed by North American Development Group.
In 2022, Macquarie purchased Boca Center’s office and retail components, excluding the hotel, from an affiliate of Hartford, Connecticut-based Barings for a combined $261.5 million, records show.
Boca Center represents 40 percent of West Boca’s 990,000 square feet of Class A inventory, according to Newmark. Remaining availability is 100,000 square feet among One Town Center, Two Town Center and One Boca Place.
While rents have taken off in West Palm Beach, growth in Boca Raton has been more measured, leaving room for rents to climb, as tenants that are priced out of West Palm and Miami turn to Boca for affordable space.
Boca Raton is home to the headquarters of several multibillion-dollar publicly traded companies, including security giant ADT, energy drink maker Celsius, prison operator GEO Group and wireless infrastructure company SBA Communications. Office Depot’s parent company ODP Corp., which was taken private in a $1 billion acquisition by Atlas Holdings last year, is also based in the city.
Last month, Steve Ross’ Related Ross closed its acquisition of the 124-acre Boca Raton Innovation Campus with Newmark arranging over $460 million in financing from Ares Capital Management. Palo Alto, California-based quantum computing company D-Wave Quantum is one of the most recent high-profile tenants to announce moving its headquarters to a 34,520-square-foot space at the BRIC. David Martin’s Terra is building a two-phase multifamily community on nearly 13 acres of the campus.
Ross already has nearly 3 million square feet under his belt in West Palm Beach and has been expanding to other cities in Palm Beach County, like Boca Raton and Wellington, with more than $10 billion in planned investment across the county, according to the developer’s website.
Read more
Boca Center’s offices, retail, restaurants trade for $261.5M
Steve Ross buying Boca Raton’s ex-IBM campus, plots mixed-use “micro city”
Florida real estate billionaires on Forbes 400 worth collective $52B
