Adler Real Estate Partners Sells Boca Office For $46M

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Adler Real Estate Partners sold an office complex in Boca Raton, Fla., for $45.9 million.

Yamato Office Center features two buildings. The larger property, built in 1986, rises four stories totaling 88,750 square feet. The other, constructed in 2000, rises three stories and spans 82,974 square feet. 

SEE ALSO: FirstService Residential Relocates to Boca Raton’s Yamato Complex

The complex, which sits on approximately 10 acres, is at 1001 W Yamato Road, across the street from the Boca Raton Innovation Campus, a 1.7 million-square-foot office park where IBM developed the first personal computer. 

The trade marks a $13.6 million gain for the Miami-based seller, which bought Yamato Office Center for $32.3 million in 2015, according to property records. 

The property is now 71 percent leased, according to the buyers, a joint venture between MHCommercial Real Estate and an unnamed New York-based institutional real estate fund. A representative for the pair declined to name MHCommercial’s partner. 

“Our plan is to reposition the asset as a premier Class A office center primarily through capital improvements allowing Yamato Office Center to capture the robust demand for Class A office space in Boca Raton,” MHCommercial principals Neil Merin, Dung Lam and Jordan Paul said in a joint statement. 

The acquisition is part of MHCommercial’s second fund, launched last month with the goal of investing $250 million in commercial properties throughout the Southeast within the next 18 months. The firm already spent $32.5 million for the EcoPlex Office Center in West Palm Beach.

Last year, MHCommercial closed on its first fund, which deployed $125 million. 

In the Boca Raton purchase, Elizabeth Jones and John Strickroot of the Shutts & Bowen law firm represented the buyers. CBRE’s Christian Lee, Marcos Minaya, and Sean Kelly represented the seller. A representative for Adler Real Estate did not immediately respond to a request for comment. 

Julia Echikson can be reached at jechikson@commercialobserver.com