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Press Releases

KBS Announces the Sale of Financial Center at the Gardens in Palm Beach Gardens, Florida for More Than $71 million

  • July 23, 2019
Press Releases

KBS Announces the Sale of Financial Center at the Gardens in Palm Beach Gardens, Florida for More Than $71 million

  • July 23, 2019
PALM BEACH GARDENS, Calif. (July 23, 2019) – KBS, one of the largest owners of commercial real estate, today announced the sale of Financial Center at the Gardens, a Class A office property in West Palm Beach Gardens, Florida. Financial Center at the Gardens is a 10-story office building spanning 188,950 square feet.

Financial Center at the Gardens was purchased for $71.8 million by New York Life Insurance Company, one of the largest life insurers in the world. KBS originally purchased the property in 2015 in a joint venture with a sovereign partner.

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. Financial Center at the Gardens offers easy access to Interstate 95 and the Florida Turnpike. Tenants will also have easy access to Orlando with the pending Tri-Rail station which will sit near the Florida East Coast tracks at PGA Boulevard. Over the past few years, KBS spent more than $1 million to renovate the property including a main lobby renovation with a new lounge and wine bar as well as upgrades to the café, restrooms, corridors and elevators.

“Targeting growing cities, such as Palm Beach Gardens is an explicit part of our investment strategy,” said Allen Aldridge, senior vice president for KBS and asset manager of the property. “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.”

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. Overall absorption exceeded 78,000 sf in Q1 2019, the highest Q1 absorption recorded in nearly 5 years.

Palm Beach Gardens is the largest municipality in North Palm Beach County and the center of commerce and population density. Home to the Benjamin School, one of the country’s elite private schools which attracts many wealthy executives and high-profile families, alumnae include Tiger Woods and Jack Nicklaus.

“KBS is extremely deliberate in implementing our real estate strategies and selling assets at an opportune time,” added Marc DeLuca, regional president, Eastern United States for KBS. “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.”

“Investor interest in this uniquely positioned premier asset was robust,” said Mike Davis, vice chairman for Cushman & Wakefield who led the sales team. Mike Davis, Dominic Montazemi, Rick Brugge and Scott O’Donnell of Cushman & Wakefield represented KBS in the transaction.

Media Contact

Chris Sullivan

MacMillian Communications
212-473-4442
chris@macmillancom.com

Ginny Walker

KBS PR Manager
949-417-6535
gwalker@kbs.com

Tyler Killette

Cushman & Wakefield
813-204-5341
Tyler.killete@cushwake.com

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Industry Trends

Underwriting the Perceived Instability of Short-Term Office Leases

  • February 16, 2021
The threat of shorter office lease terms has been looming over the commercial real estate industry for several years. Companies first braced for the potential impact of new standards from the International Accounting Standards Board (IASB) recognizing all leases on the balance sheet, which took effect in January 2019. Then, the office leasing world was hit with additional challenges from COVID-19 as many companies opted to work from home and re-evaluated the role of their physical office space.
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Envisioning the Future of the Built Environment

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Amidst the ongoing crisis, built environments are at the front lines of change and will play a huge role in creating a more resilient world going forward. Office architects are re-envisioning the future of the workplace—where and how we work. Unfortunately, there is no crystal ball to predict exactly what the new future-oriented office will look like, but what we do know is flexibility and adaptability will be key in resilient design.
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Why Texas is becoming a commercial real estate powerhouse

  • January 21, 2021
It looks like 2021 will be another big year for Texas, a year when a lot of major companies will make the jump and move to the Lone Star state. Just look at these transitions:
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