Singapore-based Prime US REIT paid $99.5 million for 193,440 square feet of Class A office space in Boca Raton, Fla. Known as One Town Center and located in the city’s retail district along North Military Trail, the building was previously owned by a joint venture between CP Group and Siguler Guff. At roughly $514.40 per square foot, it’s the largest office deal in 2021 for the Boca Raton market.
Prime US REIT was represented by KBS, the company’s asset manager for its U.S. real estate portfolio. The seller’s team included Christian Lee, José Lobón, Amy Julian, Andrew Chilgren and Royce Rose of CBRE.
Built in 1990, One Town Center has been the home of several major firms throughout the years, including chemical company WR Grace and national security system provider Tyco. But, when CP Group acquired the property, it had an occupancy rate of barely 30%. However, following renovation efforts — which included repaving existing roadways; landscaping improvements; upgrades to the parking lot and sidewalk; and the addition of a new fountain — CP Group managed to turn around the fortunes of the 10-story tower. Currently, the property’s occupancy rate stands at 95%, and CP Group more than doubled the asset’s value since acquiring it in 2014 for $44.7 million.
“Our strategic plan succeeded beyond our expectations in restoring One Town Center’s status as the most desirable office tower in Boca Raton,” said Angelo Bianco, managing partner at CP Group. “We are proud of the improvements and value we created and look forward to playing a role in its continued success.”
Senior Vice President Brett Reese added, “Palm Beach County has proven itself to be a clear winner coming out of COVID. Demand for quality office buildings with investment-grade tenancy is stronger than ever.”
Previously, Prime US REIT — whose current U.S. portfolio comprises 12 properties totaling $1.41 billion — had also acquired the Sorrento Towers in San Diego for $146 million. Meanwhile, CP Group has been active in the Atlanta office market — where it purchased One CNN Center from AT&T — and in Miami, where it forked over $225 million for the 38-story One Biscayne Tower.