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IBM at Beacon Square

Falcon Real Estate completed the acquisition of the IBM office building in Boca Raton, Florida, immediately after its construction. IBM consolidated three South Florida offices and over 1,000 employees to this location. The ten-year lease with IBM Inc. was triple-net, and had a 12.5% rent increase after five years. The tenant had two renewal options at 95% of fair market value. The property was strategically located at the intersection of Interstate 95 and Congress Avenue in Boca Raton. IBM had a long history in Boca Raton, and developed the nation’s first personal computer at its previous campus location in that city. The purchase price was $33.8 million, with $19 million of mortgage financing. The IBM Building was sold at a price of $42.3 million equal to an Internal Rate of Return of 8.47%.

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IBM at Beacon Sqaure