MHCommercial Real Estate Fund and Waterfall Asset Management Acquire Prestigious Palm Beach Office Project – Golden Bear Plaza – for $49,750,000

— NAI/Merin Hunter Codman has been retained for the management and leasing of the property –

West Palm Beach, Fla. – MHCommercial Real Estate Fund LLC (“MHC”) a Florida based discretionary private real estate fund has formed a joint venture with Waterfall Asset Management, LLC (“Waterfall”), a New York based institutional asset manager, to acquire Golden Bear Plaza, an iconic 243,000 SF, Class-A, office complex located in Palm Beach Gardens, Florida for $49,750,000.

Golden Bear Plaza, a three-building project originally developed between 1985 and 1990 by Jack Nicklaus’ development company, is a locally recognized landmark with panoramic views of the Intracoastal Waterway and the Atlantic Ocean that serves as home to some of the most prominent tenants in South Florida including AT&T, Otis Elevator Company, Pike Electric, Dycom Industries, NextEra Energy, SlimFast and Zimmer Biomet 3i.

The 90% occupied property is the third acquisition for MHC which was formed in the fall of 2019 by Dung Lam, Neil Merin and Jordan Paul, Principals of West Palm Beach, Florida based NAI/Merin Hunter Codman, Inc. along with Florida based real estate veteran Joe Sprouls to acquire income producing properties with strong cash flow potential in dynamic markets throughout the Southeastern United States. Corey Winsett, MHC Director of Acquisitions and Asset Management, spearheaded the due diligence for MHC working with Shutts & Bowen LLP who served as counsel for the purchaser under the direction of Art Menor.

“We are very pleased to have successfully closed this transaction in a challenging environment,” said MHC Principal Jordan Paul, “Golden Bear Plaza is a trophy asset that aligns perfectly with MHCommercial Real Estate Fund’s investment goal to acquire high-quality assets in growing Southeastern markets. The property benefits from a strong and diverse tenant base and we are particularly pleased to have an exceptional financial partner in Waterfall Asset Management.”

The project represents the first office acquisition in South Florida for Waterfall, a New York based registered investment advisor with approximately $8.8 billion in assets under management as of February 1, 2020. Patti Unti, Managing Director in charge of commercial real estate equity for Waterfall said, “The acquisition of Golden Bear complements our portfolio with the addition of a well performing asset within a desirable sub-market while partnering with a best-in-class local operator, MHC.”

Financing for the project was provided by M&T Bank under the direction of Senior Relationship Manager Steve Potting. MHC Principal Dung Lam, who structured the financing with M&T Bank stated, “The acquisition of Golden Bear fits very nicely with our investment thesis and hurdles. We were able to structure a phenomenal loan with M&T Bank that will allow us to realize this asset’s potential. This was our first deal with M&T Bank and we hope it’s the first of many as we deploy the remaining capital in our fund.”

NAI/Merin Hunter Codman will provide property management and leasing services for the new ownership group under the direction of MHC Principal Neil Merin, SIOR, CCIM who said, “After 17 years of providing leasing and management services at this iconic office project, we are excited to step into an ownership role and continue to operate this first-class office project as part of our portfolio”.

Jason Sundook, SIOR and Lesley Sheinberg will oversee leasing for NAI Merin Hunter Codman and may be contacted at 561-471-8000.

Click here to read the full Press Release.

Brokerage General Press Releases Property Management Transactions

Billionaire Jeff Greene battles with WPB mayor over unfinished office building

The following excerpt was originally written by Katherine Kallergis and Keith Larsen of The Real DealClick here to view the full article.

Two weeks ago, billionaire developer Jeff Greene threatened to stop construction of a two-tower, 30-story mixed-use project in downtown West Palm Beach.

Jeff Greene and a rendering of 550 North Quadrille Boulevard (Credit: Arquitectonica International via Facebook)

Greene, who told the Palm Beach Post in late April that he would “leave the shell up” because the city was resistant to approve a zoning request, is changing his tune. Now, he’s saying that he will build the project at 550 North Quadrille Boulevard as is, but at a slower pace, if he can’t get the property rezoned. Greene wants to change the project’s zoning from hotel, office space and multifamily to all multifamily.

West Palm Beach’s Central Business District has 673,350 square feet of Class A office space under construction, with an average asking rent of $54.39 per square foot, according to Colliers International South Florida’s first quarter report.

Neil Merin, chairman of the commercial real estate firm NAI Merin Hunter Codman, said the city has shown that it can only absorb one new Class A office building every 10 years.

To go forward with the office component of the One West Palm project “seems to be silly,” Greene said. He’s already invested $100 million into construction.

Want to read the full story? View PDF | View Link

General News Articles

DEALS FORECAST: Predictions about the future of South Florida real estate

The following excerpt was originally written by the South Florida Business Journal. Click here to view the full article.

Before the novel coronavirus infected the South Florida real estate industry, it was always clear whether it was a buyer’s or seller’s market.

But, like most industries, it’s a sector of the region’s economy that’s not immune to the virus, formally known as Covid-19.

An abundance of confidence in South Florida’s most valuable sector has morphed into a wealth of unpredictability in recent weeks.

The Business Journal reached out to local experts — many of whom have weathered previous downturns — to get their take on what the future might look like for each segment of the region’s booming real estate industry: residential, industrial, office, retail and hospitality.

We also asked professionals how the coronavirus affected their deal flow. The results of a Business Journal survey offer a rough picture of an industry at a standstill.

From small companies to large ones, a majority told us that the pandemic greatly slowed or halted deal flow. Most say that’s because of uncertainties among buyers and sellers.

Neil Merin offered his take on the office sector below.

“There will be a slightly higher vacancy rate because some companies will totally fail. Some tenants will renegotiate their rent. Some see it as a way to preserve cash.” – Neil Merin, Chairman, NAI Merin Hunter Codman

What do other professionals have to say? How will each sector feel COVID-19’s impact? See the original article here: View PDF | View Article

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Tuesday’s Tour of the Day: 951 Yamato

Check out the stunning 951 Yamato office building in Boca Raton!

A 146,000 square foot Boca Raton Class-A office building featuring a stunning atrium, lush interior courtyard, concierge services and electric car chargers. 951 Yamato is located in Boca Raton, midway between Broward and Palm Beach County business markets and just one mile from I-95 with a Tri-Rail Shuttle stop at the building. Searching for the perfect office suite for lease? 951 Yamato offers small and medium move-in ready spec suites, as well as corporate headquarter sized space for lease. Now ENERGY STAR rated!

Call Jay Grossman or Rich Brockney today at 561-471-8000 to learn more about office space for lease in Boca Raton.

General Property Management Tour of the Day

Tuesday’s Tour of the Day: Gardens Pointe

Check out Gardens Pointe!

Class-A office space for lease in the heart of Palm Beach Gardens. Gardens Pointe is a well appointed property featuring an upgraded lobby area, hurricane rated impact glass, fiber optics, high-end finishes and kitchenettes – in addition to lush landscaping, winding lake view paths, ample parking and vehicle charging stations. Gardens Point is surrounded by the finest retail, dining, and office complexes in the city. Adjacent to The Gardens Mall, Downtown Palm Beach Gardens and Legacy Place, tenants can enjoy a multitude of dining and shopping options within walking distance. The property is also in the heart of Palm Beach Garden’s business corridor while conveniently located ¼ mile from I-95, two miles east of the Florida Turnpike and 13 miles to Palm Beach International Airport.

Call Jason Sundook or Christopher Smith at 561-471-8000 to learn more about space for lease in Palm Beach Gardens.

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Tuesday’s Tour of the Day: 1 East Broward

Check out 1 East Broward!

PREMIER DOWNTOWN FT. LAUDERDALE OFFICE SPACE FOR LEASE.  1 East Broward truly is the #1 choice for businesses seeking first-class, downtown office space for lease in Fort Lauderdale’s Central Business District. The 19-story, Class-A office building comprised 350,000 square feet is located at the northeast corner of Broward Boulevard and Andrews Avenue. Just steps from the Brightline train station, 1 East Broward is within walking distance to several local attractions including Flagler Village’s Arts and Technology village (FATVillage), Music & Arts South of Sunrise District (MASS), and renowned Las Olas Boulevard.

Tenants enjoy unparalleled amenities including a luxurious grand lobby with soaring floor-to-ceiling glass and high-end marble finishes, impressive panoramic views, an exclusive state-of-the-art fitness center, complimentary shuttle services, manned 24/7 security and a variety of on-site services including: restaurant, café/sundry shop, dry cleaning, car detailing, banking/ATM and property management. Tenants also enjoy plentiful parking in the garage, connected by an air-conditioned, newly renovated sky-walk.

1 East Broward offers the best in convenience and walkability with fantastic access to I-95, I-595 and the Hollywood/Fort Lauderdale International Airport. It’s also the closest office building to the new Fort Lauderdale Brightline station.

It’s all happening here. Call 561-471-8000 today to learn more about downtown Ft. Lauderdale’s #1 office space for lease at 1 East Broward.

General Property Management Tour of the Day