Mesa West Capital has provided a $71.6m first mortgage loan to Crocker Partners and Siguler Guff & Company for the acquisition and repositioning of two office buildings in Boca Raton, Florida.
The floating rate, interest-only loan allows Boca Raton-based Crocker and its New York-based equity partner to fund capital improvements and leasing costs associated with stabilizing the properties: a 200,000 sq ft building known as One Town Center, at 1 Town Center Road, and an adjacent 139,000 sq ft building called The Plaza.
Mesa West vice president Russell Frahm, who covers the southeastern US for Mesa West, said Boca Raton represents one submarket in the region that is “primed for growth over the next several years.”
“The area is now in its second year of significant employment growth and with new jobs comes increasing demand for office space,” he said.
Crocker, which is experienced in the area and actually built The Plaza in 1986 and One Town Center in 1990, purchased the properties from MetLife Real Estate Investors for $81m in December.
The firm cited the improving economy, positive demographic trends and low levels of new product in the area as reasons for the acquisition and subsequent plans.
The properties are presently less than half occupied and, in addition to renovating and leasing them up, Crocker has hinted that it could develop the surrounding land.
“Buying Class A vacancy in one of South Florida’s most desirable office markets is central to our investment strategy,” Thomas Crocker, managing partner of Crocker Partners, said in a statement at the time of purchase. “We have significant upside potential, as both buildings come with extensive development opportunities.”
Both office buildings are located south of Glades Road near Interstate 95 and across the street from the Town Center Mall. CBRE arranged the financing. Mesa West was unable to disclose the loan terms in time for publication.