Vanderbilt Office Properties Refis West Palm Building with $96M
By Julia Echikson August 27, 2024 1:28 pm
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Vanderbilt Office Properties and Trinity Capital Advisors scored a $96 million loan to refinance an office building in Downtown West Palm Beach, Fla.
The loan originated by BMO (BMO) covers Northbridge Centre, a 21-story office tower at 515 North Flagler Drive. The 294,493-square-foot office property is 92 percent leased to 48 tenants, according to CBRE, whose Amy Julian and Andrew Chilgren represented the borrower.
The joint venture purchased the office complex for $98 million in 2019, according to property records.
Since its acquisition, rents have shot up by 46 percent, with 88,000 square feet in leases having been recorded over the past two years, according to CBRE. The owners have spent $18 million on improvements to Northbridge Centre, which was completed in 1985.
Representatives for Vanderbilt Office Properties and Trinity Capital Advisors did not immediately respond to a request for comment.
The West Palm Beach office market has fared fairly well in spite of the rise of remote work, thanks to new-to-market finance tenants such as Goldman Sachs, Elliot Management and J.P. Morgan, all of which opened offices during the pandemic.
Office occupiers took a net 49,776 square feet of office space off the market in the second quarter, and vacancy rates dropped by 10 basis points to 8.7 percent, per Colliers.
Julia Echikson can be reached at jechikson@commercialobserver.com.
