BH Group JV to Redevelop Former Office Depot HQ Site

Nearly one year after acquiring the three-building 639,830-square-foot Office Depot headquarters in Boca Raton, Fla., for $104 million in a partial sale-leaseback deal, BH Group and PEBB Enterprises are moving forward with plans for a mixed-use redevelopment at the nearly 29-acre site now called The Offices at 6600 N. Military Trail.

Miami-based Related Group has joined BH Group and PEBB in executing plans for the mixed-use project. The developers received a critical zoning ordinance approval earlier this month from the Boca Raton City Council and expect to complete the site plan approval process during the fourth quarter.

In addition to the 500 multifamily units, the partnership’s proposed project includes a 36,700-square-foot luxury gym and four retail and restaurant outparcel buildings totaling about 42,000 square feet. The remaining two office buildings would have a total of 407,500 square feet. The site already includes a fitness center, a cafeteria, an auditorium, many conference rooms and covered parking.

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At the time of the property’s acquisition in early April 2023, seller ODP Corp. agreed to lease 285,000 square feet of office space for at least two years. Following the redevelopment, the firm’s headquarters would remain at the site but consolidate its space—currently spread among three buildings—into the 214,684-square-foot central office tower until at least 2033.

That frees up the other buildings. The joint venture will renovate the northern tower as a Class A multi-tenant office building, while the southern tower will be replaced by 500 multifamily units wrapped around the southern parking garage and overlooking the Old Course at Broken Sound Country Club golf course.

Isaac Toledano, who co-founded Aventura, Fla.,-based BH Group with his wife Liat, said in a prepared statement office tenants now want to be in dynamic mixed-use environments. He added the partnership plans to create a true town center for the area while bringing new high-quality residences to the city.

Office upgrades, leasing activity

Joe Freitas and John Criddle of CBRE are handling leasing at The Offices at 6600 N Military Trail on behalf of BH Group and PEBB. Eric Hochman, chief investment officer at Boca Raton-based PEBB, said in prepared remarks the extensive capital improvements will only increase interest in the available office space.

Another tenant has also inked a deal for space at the site, where upgrades to the office lobbies, common areas and amenities spaces are already underway. Last month, the partnership signed a 20,388-square-foot office lease with renewable energy company MN8 Energy.

BH Group and PEBB are converting one existing floor into spec office suites to create up to seven move-in ready offices for prospective tenants. Negotiations have begun for several of the spec spaces, according to the partnership.