Denholtz Properties announces the acquisition of the Deerfield Corporate Park, a two building, Class-A 157,438-square-foot office park at 602-668 and 776-858 Military Trail in Deerfield Beach, Fla. The acquisition expands Denholtz Properties’ Florida portfolio to nearly 1.5 million square feet.
Currently 98 percent leased to 31 tenants, Deerfield Corporate Park is comprised of 602-668 Military Trail, a single story, 74,602-square-foot office building, and 776-858 Military Trail, a single story, 82,836-square-foot office building spanning 13.5 acres. Both buildings boast 14’ clear span ceilings, 60’ to 75’ building depths, and above-market parking ratios of 4 per 1000 square feet. Over the last four years, the complex has undergone over $600,000 in capital improvements including the installation of a brand-new roof top air handling unit, replacement of HVAC systems, upgraded drainage, and new landscaping.
The portfolio boasts a strategic location in Broward County, one of the nation’s most in demand real estate markets. Located one and a half miles from two Interstate 95 interchanges and less than three miles from the Florida Turnpike/ Sawgrass Expressway, 82 percent of south Florida’s population lives within a 60-minute drive of the property. In addition to ideal highway accessibility, the portfolio is a six-minute walk from the Deerfield Beach Tri Rail Station providing easy mass transit connectivity to Miami and West Palm Beach.
The south Florida office market is well-positioned for continued growth over both the short and long-term. With 6.2 million people, the area is projected to see a 25 percent growth in migration over the next five years, ranking it fourth among the fastest growing major MSAs in the United States. Accompanying this population growth, the market has added 332,500 jobs since 2014. Since 2012, the Broward County office market has absorbed 2.2-million square feet, with only 660,000 square feet in new deliveries over the same period. The lack of Class-A office product and strong demand in the local market made the Deerfield Beach Corporate Park an ideal acquisition opportunity for Denholtz Properties.
“For many years, we have been incredibly bullish about the prospects for the south Florida market. With rapid population growth, a tremendous talent pool, dynamic cities, and a variety of employers, this market is well positioned for continued strength,” said Steven Denholtz, CEO of Denholtz Properties. “We look forward to expanding our presence in the market with this acquisition and continuing to leverage our multi-tenant leasing strategy to drive returns for our investors.”
Denholtz Properties’ Director of Florida Acquisitions, JP Josephson stated, “Deerfield Corporate Park’s stable occupancy history, its institutional ownership history, and its central location to all of South Florida was integral in our decision to pursue this acquisition. We continue to pursue similar transactions throughout Florida and would like to thank Ivy and CBRE in getting this transaction closed.”
Owners of almost one and a half million square feet of commercial real estate in Florida, Denholtz Properties’ portfolio covers a wide range of property types and locations across the Orlando, Tampa/ St. Petersburg, and Miami markets. Ranging from downtown high-rise offices to single story flex/industrial buildings, Denholtz Properties’ Florida strategy is based off a consistent multi-tenant approach that provides superior risk-adjusted returns to the firm’s investors and superior tenant service to achieve high tenant retention across asset types.
The sellers, Ivy Realty, were exclusively represented by the CBRE Capital Markets team of Vice Chairman Christian Lee and Executive Vice President José Lobón. Vice President, Amy Julian oversaw the financing. The CBRE Capital Markets team also included Financial Analyst Royce Rose, and Vice President Owen Sagar, with CBRE Leasing.