BOCA RATON, FL | October 10, 2022 – Colliers is pleased to announce the sale of South City Plaza. The four-story Class A office building is located at 1515 South Federal Highway in Boca Raton, FL. Executive Managing Director Mark M. Rubin, Director Bastian Laggerbauer, and Financial Analyst Jake Stauber of the Colliers South Florida Investment Services Team represented the seller, Penn-Florida Companies, in the transaction which closed October 7, 2022. Maria Gomez, President of Powerful Real Estate LLC., represented the buyer, Renaissance Properties, in acquiring this trophy office tower.

“The interest from buyers seeking high-quality office investment properties in South Florida remains strong and steady,” said Rubin. “This transaction is a testament to the strength and fundamentals of the Boca Raton office market.”

The 179,837 square-foot building is situated on a premier 3.66-acre parcel near the bustling downtown core of Boca Raton. The property offers monument signage opportunities that are visible along Federal Highway providing exposure to over 33,000 travelers per day. South City Plaza boasts a highly coveted location between two of South Florida’s most traveled thoroughfares, the Federal Highway and Dixie Highway. The office tower is less than a five-minute drive from Penn-Florida Companies’ $1.2 billion-dollar redevelopment project, Via Mizner. The mixed-use project will feature a Mandarin Oriental Hotel, luxury apartments, private condominium homes, retail space, and a golf course spanning three towers connected by a sky bridge. Recent developments in Boca Raton’s downtown core further position South City Plaza as a prime investment asset in a high-growth market. Additionally, the construction of a Brightline stop soon will further underline the building’s future value retention and growth.

“Even amidst an evolving and challenging debt market, our team relished the opportunity to work alongside sophisticated counterparts on both sides that have successfully acquired and repositioned assets in high-demographic markets across the U.S.,” said Laggerbauer.

The buyer, Renaissance Properties, is a New York-based commercial real estate firm led by Kenneth and Bradley Fishel. The family-run organization is a leading owner and manager of more than one million square feet of commercial space throughout New York and Southern Florida. The company plans to reposition and inject capital into the property to solidify its positioning as a trophy Class A asset within the East Boca Raton submarket.

The seller, Penn-Florida Companies, is an innovative real estate owner and developer focused on enhancing life experiences through its portfolio of unique commercial, residential, and hospitality properties. The Boca Raton-based firm owns and operates millions of square feet in existing assets, while developing various prominent projects.

As the second largest city in Palm Beach County, Boca Raton draws residents, tenants, and investors with its high quality of life, growing population, educated workforce, and friendly business environment. The influx of finance and technology firms from high tax-burdened northeastern states has helped to compress the vacancy rate down to a ten-year low of 9.8% and an all-time high rental rate of $41.54 per square foot. These strong market fundamentals have also attracted investors to Boca Raton setting a record office sales volume in 2021 at $922 million. So far in 2022, Boca Raton has seen $345 million in office investment sales, with the price per square foot reaching $248. Historically, private and institutional investors have been majority buyers; however, in 2022, the dynamic shifted with more cross-border investors. This trend is expected to continue as overseas investors seek stability and hedge against inflation in the U.S.