Gatsby Enterprises Buys Boca Office at Discount
By Julia Echikson July 18, 2024 4:10 pm
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Gatsby Enterprises purchased an office building in Boca Raton, Fla., for $82 million — about $18 million less than its previous sale price four years ago, property records show.
Called One Town Center, the 10-story building features 191,294 square feet of leasable space as well as a 151,392-square-foot parking structure. The 200,858-square-foot building at 1 Town Center Road, completed in 1990, faces the South Military Trail, just east of Simon Property’s Town Center at Boca Raton shopping mall.
Wells Fargo provided a $51 million acquisition loan to Gatsby Enterprises, a New York-based investor that also owns the 800 Brickell office building in Miami’s Brickell district.
KBS — the U.S.-based asset manager of Singapore-based Prime U.S. REIT — purchased the property for $99.5 million in 2021, when the property was 95 percent leased, the seller, CP Group, claimed. The recent sale price represents a nearly 18 percent loss in value.
A representative for KBS confirmed the sale but declined to provide additional details. A spokesperson for Gatsby Enterprises did not immediately respond to a request for comment.
As office values have decreased since the rise of work from home, developers have sought to transform their properties into mixed-use developments.
Just this week, MHCommercial Real Estate Fund filed a proposal to add a 289-unit residential building onto the 900 Broken Sound office property. Also, BH Group and Pebb Enterprises are redeveloping the Office Depot office campus into a mixed-use campus that’s set to include a 500-unit apartment building and 42,000 square feet of retail space.
Julia Echikson can be reached at jechikson@commercialobserver.com.
