CP Group has offloaded another office property in its home market of Boca Raton, Fla., adding to a string of sales that has reshaped its local portfolio since the summer. The firm and its partner, Chicago-based Harrison Street Asset Management, sold One Boca Place for $78.9 million, according to property records reported by Commercial Observer.
The buyer is Golden East Investors, a New York-based firm. It acquired the 286,890-square-foot asset at 2255 Glades Road, just west of Interstate 95 and near the Town Center at Boca Raton indoor mall. The two-building complex was built in 1986 and sits on a 7.6-acre parcel.
Golden East financed the purchase with an $82.1 million loan from City National Bank of Florida. The loan exceeds the reported purchase price, a notable detail for a suburban office deal in the current market.
For the sellers, the sale delivered little in the way of gains. CP Group and Harrison Street bought the property for $76.4 million in 2014, meaning the exit price is about $2.5 million above what they paid roughly twelve years ago. That works out to a modest premium over a long hold period, before accounting for any capital spent on the buildings over that time, which the source does not detail.
The transaction is the third office sale by CP Group in Boca Raton since the summer. In September, the firm sold the Two Town Center property for $62 million to Joe Sitt’s Thor Equities. Earlier this summer, it sold the 124-acre, 1.7-million-square-foot BRiC campus to Stephen Ross’s Related Ross. The price of that deal was not disclosed.
Taken together, the three sales show CP Group, which is headquartered in Boca Raton, steadily trimming its office holdings in the city where it is based. The buyers in these deals include prominent New York names, among them Sitt’s Thor Equities and Ross’s Related Ross, along with Golden East Investors, underscoring the continued flow of New York capital into South Florida commercial real estate.
Representatives for CP Group and Golden East Investors did not immediately respond to Commercial Observer’s requests for comment, so the sellers’ strategy and the buyer’s plans for One Boca Place remain unclear. The reported figures come from property records, and neither side has publicly explained the pricing or the timing of the sales.
For New York investors watching Sun Belt office markets, the One Boca Place deal offers a data point on how long-held suburban assets are trading: with financing available, but with limited upside for owners who bought a decade or more ago.
Frequently Asked Questions
How much did Golden East Investors pay for One Boca Place?
Golden East Investors bought One Boca Place in Boca Raton, Florida, for $78.9 million. The sale was reported through property records cited by Commercial Observer.
Who sold One Boca Place in Boca Raton?
CP Group and its partner, Chicago-based Harrison Street Asset Management, sold the office complex. The two had bought the property in 2014 for $76.4 million.
Where is One Boca Place located?
One Boca Place is at 2255 Glades Road in Boca Raton, Florida, just west of Interstate 95 and near the Town Center at Boca Raton mall. The two-building complex was built in 1986 and sits on a 7.6-acre parcel.
How much was the loan for the One Boca Place purchase?
Golden East Investors financed the purchase with an $82.1 million loan from City National Bank of Florida. That loan amount exceeds the reported purchase price of $78.9 million.
What other office properties has CP Group sold in Boca Raton?
Since the summer, CP Group has sold the BRiC campus to Related Ross and Two Town Center to Thor Equities for $62 million in September. One Boca Place marks the third Boca Raton office sale by the firm in that period.
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