Village Executive Offices in West Palm Trades for $14M
By Chava Gourarie October 24, 2021 5:56 pm
reprints
A three-story office property in West Palm Beach sold for $13.9 million, according to Colliers (CIGI), which brokered the deal.
The seller, Yakov Cohen, purchased the 62,875-square-foot Village Executive Offices in 2017 for $8.3 million, according to property records. He then invested $880,000 to renovate it, and brought occupancy up to 97 percent from below 50 percent, said Colliers’ Bastian Laggerbauer, who represented the seller.
Located on the outskirts of downtown West Palm Beach, at 560 Village Boulevard, the property offers an alternative for tenants who are looking to pay a more modest rent, said Laggerbauer.
An influx of office tenants and capital into West Palm Beach has caused rents to rise upward of $50 a square foot in some cases, whereas rents at the Village Executive Offices are closer to the $20 to $22 range, said Laggerbauer. Rents in Palm Beach have risen 7.4 percent since last year, to an average of $38.13 per square foot, with Class A rents averaging $44.21, according to a report from Newmark.
The buyer, a group of investors led by Arturo Alvarez, purchased a similar value-add property nearby in 2020, at 901 Northpoint Parkway. The property sold at a 6.7 cap rate and at roughly $220 per square foot. The seller paid off an existing $5.5 million loan on the property, and secured new financing from Citibank.
Tenants at the property include eSuites, a local WeWork alternative, as well as a mix of law firms, medical offices, and administrative firms.
Laggerbauer represented the seller alongside Mark Rubin of Colliers, as well as Shlomo Chelminsky from King Real Estate, who is associated with the seller. Colliers’ Michael Falk represented the buyer.
Chava Gourarie can be reached at cgourarie@commercialobserver.com.
