IP Capital JV Pays $77M for Boca Raton Campus

Fountain Square

A partnership between Bridge Investment Group and Ascentris has sold Fountain Square, a 242,690-square-foot Class A office campus in Boca Raton, Fla., for $77.3 million, Palm Beach County records show. The buyer was another joint venture, a partnership between IP Capital Partners and Edge Principal Advisors.

JLL Capital Markets arranged the $56.5 million financing package originated by CIBC Bank USA. The loan carries a variable interest rate.

The office campus last traded in December 2017, when the current sellers paid $54.5 million for Fountain Square, CommercialEdge data shows. The joint venture funded that purchase with a $42 million financing package provided by Principal Financial Group.

Capital improvements

The four-story buildings sit on nearly 15 acres at 2600-2700 N. Military Trail. The three-building complex was completed in 1998, but underwent thorough renovations in 2015, according to CommercialEdge. After the 2017 acquisition, Bridge Investment Group and Ascentris also implemented a $6.1 million capital improvements plan.

The most recent renovation program included plans to upgrade the lobbies, enlarge the common areas as well as to build an outdoor collaborative space and additional spec suites.

Fountain Square features floorplates between 18,250 and 23,250 square feet, above-standard ceiling heights and a parking ratio of 3.50 spaces per 1,000 square feet. The tenant list includes Stifel, IDI Holdings, Shendell & Pollock and ORBCOMM, among others.

Fountain Square. Image courtesy of JLL Capital Markets

The low-rise is less than 3 miles from Boca Raton Airport, within the West Boca Raton submarket, offering easy access to Interstate 95. The submarket has shown robust rent growth, a 50 percent increase between 2011 and the first quarter of 2021, according to JLL research.

The JLL Capital Markets team included Senior Managing Director Chris Drew, Director Maxx Carney and Associates Reid Carleton and Jimmy Calvo. In September, Drew also led a JLL team that arranged the disposition of 1905 Medical Center, a 102,186-square-foot property in Boca Raton.