KBS, a private equity real estate company and an SEC-registered investment adviser, has sold a Class A office property, Financial Center at the Gardens, in West Palm Beach Gardens, Florida to New York Life Insurance Company for $71.8 million.
Located along the PGA Boulevard micro-market, Financial Center at the Gardens is within walking distance to the 1.4 million sf Gardens Mall and is adjacent to Downtown at the Gardens, a lifestyle center that includes numerous restaurants, retail, entertainment venues, country clubs and golf courses, providing an excellent walkable amenity base for tenants.
“Targeting growing cities, such as Palm Beach Gardens is an explicit part of our investment strategy. Palm Beach Gardens has proven to be a developing market with positive real estate dynamics which has made it easy to keep the building nearly 100 percent leased,” said Allen Aldridge, senior vice president for KBS and asset manager of the property.
SEE ALSO : KBS sells Class A office property in Florida
During the first quarter, the overall vacancy rate for office space in Palm Beach County remained near historic lows at 13.3 percent, down 81-basis-points year-over-year, according to Cushman and Wakefield’s Q1 2019 Palm Beach County Report.
“KBS is extremely deliberate in implementing our real estate strategies and selling assets at an opportune time. As demand rises in these secondary and tertiary markets, we continue to attract a highly competitive field of potential buyers and secure pricing levels that deliver strong overall returns, in excess of our underwriting, for our investors,” added Marc DeLuca, regional president, Eastern United States for KBS.
Mike Davis, Dominic Montazemi, Rick Brugge and Scott O’Donnell of Cushman & Wakefield represented KBS in the transaction.