Top 5 Office Transactions in Florida

Florida’s market is continuously evolving and holds great potential for growth and adaptation, thanks to its steadily expanding economy and population growth. According to data provided by CommercialEdge, office investment sales in the state between January and the beginning of August 2023 amounted to more than $1.3 billion.

While the volume represents a significant drop from the $4 billion recorded during the same timeframe in 2022, this decrease is contextualized as a moderation from the exceptionally active previous year, coupled with pandemic-induced changes in work dynamics.

Investors focused their attention on the Tampa market, where transaction volume totaled $473 million. West Palm Beach came in second with $256 million in office sales. In contrast, Miami saw a significant decline in sales volume, with only $227 million worth of office assets trading hands.

The top five deals, as outlined in the table below, account for $302.6 million, which translates to 22.2 percent of the total investment volume, according to CommercialEdge. Here are the five largest office single-asset sales closed in Florida between January and August.

1. 6600 North Military Trail, Boca Raton

In April, a PEBB Enterprises and BH Group joint venture purchased 6600 North Military Trail in Boca Raton, Fla.

In April, ODP—the corporate entity behind Office Depot and Office Max—sold its headquarters building to a joint venture between Boca Raton-based PEBB Enterprises and Miami-based BH Group. The $104 million sale-leaseback deal was the largest single-property office sale year-to-date through August in Florida. The sale was funded by a 63 million loan provided by City National Bank of Florida.

ODP's recent transaction serves as a strategic move in their ongoing efforts to navigate the challenges brought about by supply chain disruptions during the pandemic. The property previously traded in 2017, when ODP purchased it from Equity Commonwealth for $132 million, CommercialEdge data shows. Completed in 2008, the 639,830-square-foot office building spreads across 29 acres at 6600 North Military Trail in Boca Raton, Fla.

2. Museum Tower, Miami

The second-largest office deal closed in the first eight months of the year was Mana Group’s $73.5 million acquisition of Museum Tower in Miami’s central business district. Bridge Investment Group sold the 266,697-square-foot asset at the end of April, with Starwood Capital Group providing $47 million in financing, according to CommercialEdge.

Located at 150 W. Flagler St., the 29-story building features 7,000 square feet of first-floor retail and 12 levels of parking. While originally completed in 1983, the previous owner—which acquired the asset in 2019 for $64.6 million from Gaedeke Group—invested some $4.5 million in building improvements since its purchase.

3. 101 East Broward Blvd & Corporate Center, Ft. Lauderdale

Homegrown company PEBB Enterprises kept active in the first half of 2023, closing another major office deal in May. The firm acquired 101 East Broward Blvd & Corporate Center, a 342,465-square-foot office complex in Fort Lauderdale, for 43 million. Amerant Bank funded the sale with a $48.5 million loan.

The seller was Stockbridge Capital Group, which previously bought the property out of foreclosure in 2018 for $41 million. Originally completed in 1982, the asset encompasses a two-story and a 24-story structure and features 3,200 square feet of retail. Tenants include Fort Lauderdale Downtown Development Authority, Truist and multiple law firms.

4. Ryder Headquarters, Medley

Earlier this year, transportation and logistics company Ryder sold its headquarters in Medley, Fla., in a sale-leaseback deal.

In another sale-leaseback deal closed in March, Bridge Industrial paid $42.1 million for Ryder‘s 248,989-square-foot headquarters building in Medley, Fla. The transportation and logistics company purchased it from Flagler in 2014 for $41 million, CommercialEdge data shows, but has been using the building as its flagship location since 2005. The four-story building sits on 17 acres at 11690 NW 105th St. and features 996 parking spaces.

Although Ryder employs over 48,000 individuals across North America, its Miami base hosts 800 South Florida office employees, a significant portion of whom have been working remotely or adopting a hybrid work model since March 2020. The sale comes as a response to these changes.

5. Bridgeport Center, Tampa

Early in 2023, NAI Merin Hunter Codman acquired Bridgeport Center, a Class A office building at 5201 W. Kennedy Blvd. in Tampa, Fla. The 183,031-square-foot building was sold by America's Capital Partners for $40 million, while the transaction was funded by a $27 million loan provided by Manufacturers and Traders Trust Co.

The property was built in 1980 and underwent significant improvements in 2011, according to CommercialEdge. Additionally, it previously changed hands in 2013 for $25 million, when America's Capital Partners purchased it from Flagler. Tenants include Troy University, Harvard Jolly Architects, America's Capital Partners and United Way Suncoast, among others.