Falcon Completes $42.25 Million Sale of Office Building in Boca Raton, Florida
In June 2008 Falcon Real Estate completed the sale of a Class A office building 100% occupied by IBM. The 160,000 square foot building located in Boca Raton, Florida sold for $42.25 million.
Built in 2001 as a built-to-suit for IBM, the four-story property sits on 11.86 acres of land and boasts a prime location and ample parking with 5.85 spaces per 1,000 square feet of space. Falcon acquired the property on behalf of a non-US investor in 2001 upon completion of construction. At that time, IBM had a new 10-year lease in place.
According to Robert Moreira, Senior Vice President of Falcon Real Estate, this was a very strategic sale for the seller. “Falcon acquired this core, well-located asset for $33.8 million and was able to maximize the sales price despite a difficult commercial real estate environment in Florida, providing our client with an attractive capital gain. We were also pleased to find that there was significant buying interest in this quality property, with a large number of bids being received.” Moreira added, “It was necessary to close this deal within a tight timeframe to meet the buyer’s 1031 exchange requirement. Given the current credit market constraints, we were also able to arrange the assumption of the existing mortgage loan on the property, which was a requirement in order to close the deal.”
The property is located in Palm Beach County, Florida, which had an office vacancy rate of 13 percent at the end of 2007. The submarket of Boca Raton accounts for 30 percent of the county’s 47 million square feet of office space.