A 24-story office tower in downtown Fort Lauderdale sold for $43 million and the buyers are looking to land new tenants.
Stockbridge 110 East Broward LLC, an affiliate of San Francisco-based Stockbridge Capital, sold the 343,500-square-foot office at 110 E. Broward Blvd. The buyer was a partnership between Boca Raton-based Pebb Capital, Fort Lauderdale-based Intalex Capital and Delray Beach-based CDS International Holdings, led by wealthy businessman Carl DeSantis. Coral Gables-based Amerant Bank financed the deal.
The price equated to $125 per square foot. CBRE’s Christian Lee, Andrew Chilgren, Marcos Minaya and Sean Kelly brokered the deal. CDS also worked with Greenwall Capital Management and law firm Kapp Morrison
Stockbridge acquired the building out of foreclosure in 2018 for $41.06 million, so it sold for a modest gain. The prior owner completed multi-million dollar renovations to the common areas and lobby in 2021.
The office was built on the 1.6-acre site in 1982.
“This deal is a significant success for our portfolio, working nearly a year to finalize it as capital markets shifted,” stated Todd Rosenberg, managing partner of Pebb Capital. “South Florida has remained a bright spot in domestic office activity, with strong fundamentals to continue this trajectory of business and population growth. Combine this with Fort Lauderdale’s economic outlook and the value-add opportunity of 110 East, the conditions align with our office investment strategy of acquiring and developing more than 600,000 square feet in the tri-county area.”
The new owners hired Travis Herring and Katherine Ridgway of Cushman & Wakefield to lease the building. They have secured about 76,000 square feet of new tenants and are “actively negotiating” another 125,000 square feet of new leases. The building is just over 50% occupied, they said.
As recently reported, ABA Centers of America signed a 33,138-square-foot least at 110 E. Broward Blvd.
“110 East Broward is a great opportunity to take advantage of current dislocation in the office segment and capital markets,” stated Bill Milmoe, president of CDS. “As soon as we completed our diligence and understood Pebb Capital and Intalex Capital’s business plan, we were enthusiastic to provide the LP capital for this very exciting project…The rapid pace of pre-closing leasing activity confirms that this is going to be a superlative opportunity.”