The Cushman & Wakefield Capital Markets Team Led by Scott O’Donnell and Dominic Montazemi Assisted A.W. Property Co. and SF Partners in the Medical Office Sale.
WEST PALM BEACH, FL, March 4, 2016 – The Cushman & Wakefield capital markets brokerage team led by Executive Director Scott O’Donnell and Senior Director Dominic Montazemi announced today that it has helped negotiate the sale of Columbia Professional Center, a 69,178-square-foot medical office complex located on the campus of West Palm Hospital.
O’Donnell, Montazemi, Director Miguel Alcivar, Senior Associate Greg Miller and Senior Director Jason Hochman represented both the seller, Palm Beach Gardens-based AW Property Co. and the buyer, Coral Gables-based SF Partners. The transaction was valued at $7.8 million, or $113 per square foot.
Columbia Professional Center is comprised of two three-story medical office buildings constructed in 1985 on a three-acre parcel at 2051–2151 45th Street. The buildings underwent substantial renovations in 2007, which included the installation of new roofs, and they are connected directly to West Palm Hospital via a covered pedestrian walkway.
Notable tenants in the buildings include HCA, MetCare of West Palm Beach, Palm Beach Neurology, Comprehensive Pain Management Services and Quest Diagnostics, Inc. At the time of sale, the development was 66 percent occupied.
“Columbia Professional Plaza presented a highly desirable, value-add investment opportunity for on-campus, fee-simple medical office buildings,” said O’Donnell. “With sufficient capital infused, the buildings will be poised to return to stabilization.”
“Unlike most on-campus medical office buildings, Columbia Professional Center is not encumbered with any ground lease with the hospital,” added O’Donnell. “SF Partners will be able to enjoy the strategic advantages of its location without hospital-imposed restrictions.”
Cushman & Wakefield Research has documented positive market indicators across the Palm Beach County office market. Vacancy is down while net absorption and average asking rates are increasing.
“The Palm Beach County office market continued to gain velocity, as leasing activity totaled 1.7 million square feet year-to-date, a 38.4 percent increase year-over-year,” wrote Senior Research Analyst Valerie Tatum in the firm’s Q4 2015 Palm Beach County Office MarketBeat Report. “Much of the leasing activity is due to organic growth as companies work to ‘right size’ their teams after a period of downsizing. The move towards stabilization has allowed the market to absorb 419,888 square feet in 2015, continuing a seven-year streak of positive annual absorption.”
“The Palm Beach County office market continues to enjoy a stable growth period on solid job growth, a trend that will remain throughout 2016,” added Tatum.
Team Website: southfloridacommercial.cushwakedigital.com
Team Twitter: @IPsfcommercial
For Further Information Contact:
Scott O’Donnell, CCIM, MAI
Executive Director and Partner
Cushman & Wakefield
+1 954 377 0475
Dominic F. Montazemi
Senior Director and Partner
Cushman & Wakefield
+1 305 533 8250
David A. Meyer
+ 1 407 489 7488