TJAC Development sells mixed-use portfolio near Boca Raton for $155M

Stateland Brown owner-brokers Ayal Frist and Dan Statlander with one of the properties, City National Bank Plaza at 7000 West Palmetto Park (Google Maps)

Stateland Brown owner-brokers Ayal Frist and Dan Statlander with one of the properties, City National Bank Plaza at 7000 West Palmetto Park (Google Maps)

TJAC Development disposed of four mixed-use office and retail plazas west of Boca Raton for $155 million, marking one of the largest commercial sales in South Florida this year.

Weston-based Titan General Partners acquired the 515,000-square-foot portfolio by buying an interest in the four limited liability companies TJAC originated to own the properties, according to Boca Raton-based Stateland Brown co-owner Ayal Frist, who brokered the deal with brokerage co-owner Dan Statlander. No deeds were recorded.

The portfolio includes roughly 17 buildings interspersed along Powerline Road from Glades Road to Southwest 18th Street, Frist said.

Florida corporate records show Titan General, as well as Carlos Ulloa and Debra Corchia, who are affiliated with Titan, became managers of TJAC affiliates TJAC Boca Grove, TJAC Palmetto Park, Boca Wharfside and Boca Medical Plaza in late February.

Frist and Statlander said Bahamas-based investment manager Holdun also bought a stake in the properties. The brokers declined to say how Titan General and Holdun divided their interest in the properties.

TJAC, founded and led by the Schwarzman family and based in Boston, focuses on student housing and mixed-use retail properties, according to its website.

Frist and Statlander said they worked on behalf of TJAC to assemble the properties from 2012 to 2016. TJAC paid a total of $78 million.

The portfolio sale includes the seven-building Fountains Center, at 7000-7700 West Camino Real, which spans 15 acres. Built in 1978 and 1981, it includes a building with two banks and a medical office; two mid-rise office buildings; and four more buildings with a mix of office and retail. Property records show TJAC bought it for $16 million in 2012 from CB Camino Real.

The sale also includes the Grove Centre, at 21301 Powerline Road, which was built in 1983 on 3.5 acres. It has a one-story and a four-story office building. TJAC bought it for $11.5 million in 2016 from SF Partners, according to records.

Also, City National Bank Plaza, at 7000 West Palmetto Park, which includes a 132,598-square-foot, mid-rise office building with Starbucks and McDonald’s outparcels. The office building includes a City National Bank of Florida office, several medical offices and restaurant space. It was built in 1986 on 7.3 acres. TJAC bought it for $37.6 million in 2016 from 700 West Palmetto I, records show.

Lastly, the portfolio includes The Boardwalk at 18th Street, at 6853-6909 Southwest 18th Street, which spans 10 acres and overlooks a lake. It has several medical offices, as well as a Carrabba’s Italian Grill with lakefront dining. TJAC bought it for $13 million in 2013 when the plaza was called Wharfside Village Shopping Center.

TJAC renovated the properties over the years. Frist and Statlander leased vacant space on behalf of TJAC and increased occupancy by 60 percent, Statlander said. Rents are in the low $20s per square foot for offices and in the $30s per square foot for retail, he said.

The portfolio had a 92 percent occupancy when TJAC sold it, and maintained its occupancy throughout the pandemic, Frist added.

In January, the Related Companies closed on its $282 million purchase of the Phillips Point office towers in West Palm Beach, marking the largest office sale in South Florida in more than a year.

More recently, an office building in Boca Raton at 6700 Northwest Broken Sound Parkway sold for $6 million to an affiliate of private equity firm AE Industrial Partners LP.

Also, investor CA Ventures paid $80 million for an apartment complex at 135 Northwest 20th Street in Boca Raton.

Multifamily project in Palm Beach County advances

Multifamily project in Palm Beach County advances

Multifamily project in Palm Beach County advances

A proposed 348-unit multifamily project between Lake Worth Beach and Wellington received approval from Palm Beach County officials, but it still has a long way to go before construction begins.

The Palm Beach County Planning Commission last week voted 8-to-5 to approve zoning changes, with some board members concerned about the number of residential units and the building height proposed for the project.

Staffers wanted to cap the number of future units at 284 and limit the building height to three stories. The project would be built on land currently used for agricultural and equestrian purposes and owned by companies managed by Sheldon Rubin.

Jennifer Morton of JMorton Planning and Landscape Architecture told The Real Deal that the project has another public hearing Oct. 28. After that, Palm Beach County commissioners would decide on adoption and rezoning aroundt March. She estimates that the project is still two years away from starting construction.

Morton told the county’s planning board at its meeting last week that capping the number of units would affect the project’s success, saying the developer originally sought 378 units. The cap would mean 64 fewer total units and 16 fewer workforce housing units.

The developer agreed to staffers’ desire for a quarter of the units to be dedicated workforce housing and agreed to reduce commercial space at the development from 140,000 square feet to 26,000 square feet, Morton said.

Called “Polo Gardens,” the development would have 17.5 units an acre on about 26 acres, more units per acre than other residential developments in the area.

Nearby Lake Worth Royale has 14 units an acre, with 370 total multifamily units on almost 50 acres. Fields at Gulfstream Polo has about 10 units an acre, with 140 townhouse units on almost 16 acres.

The board heard a letter from the Lake Worth Road Coalition opposing the project, fearing the area was becoming too congested. The coalition also sought a ban on fast food in the new development. Morton said the developer had agreed to the coalition’s demand to not allow a gas station at the development.

Rubin acquired the land from various owners starting in 2014, spending at least $7 million, according to records.

Among other proposed developments in Palm Beach County, a mixed-use project with a 158-bed, 117,000-square-foot adult living facility in Boynton Beach scored a $27 million construction loan in April. And an apartment complex on part of the Boca Dunes Golf & Country Club, developed by The Richman Group, scored a $57.4 million construction loan, also in April.

Palm Beach County and Fort Lauderdale among nation’s top single-family markets: report

Palm Beach County from the sky
Fort Lauderdale and Palm Beach County ranked among the nation’s five hottest single-family markets, according to a new report released Thursday by Ten-X.
Fort Lauderdale dropped from second to fifth place this year in Ten-X’s Top Single-Family Housing Markets Report for Spring 2016. Palm Beach County rose a few spots to land at No. 4. Seattle and Portland remained in first and second place, respectively, and Nashville was No. 3.
Other Florida cities also register spots on the list: Orlando at sixth place; Tampa at 11th; Miami at No. 19 and Jacksonville at No. 31.
Ten-X ranked the top 50 markets across the United States based on a combination of factors, including rising home prices, home appreciation, affordability and economic and demographic conditions.
According to the report, Palm Beach County experienced a 14.1 percent growth in home prices year-over-year, while Fort Lauderdale saw home prices rise by 8 percent. Home sales were up 2 percent and 1.7 percent in Palm Beach County and Fort Lauderdale, respectively, Ten-X found.
While both South Florida markets have bounced back from the economic downturn of a few years ago, home prices remain far below their peak levels, suggesting room for continued growth, the report said. At a median sales price of $247,000, Palm Beach County is still 18 percent below its peak. At $227,000, Fort Lauderdale prices are still 22 percent below their prior peak, according to the report.
“Palm Beach County and Fort Lauderdale embody the ongoing recovery effort seen in many Florida markets, leaving ample opportunity for future growth as housing fundamentals remain below pre-recession levels,” the report said.

Source: The Real Deal Miami