The property, a 33,076 square foot Class A medical office building located in Palm Beach Gardens, Florida was acquired in December 2014. The 40% leased medical office building was acquired for $6.8 million. It is located in an established business park, one block east of Interstate 95. The area has high income demographics.
The investment strategy was to reintroduce the property to the market at a competitive rental rate and lease it up. This strategy was successfully executed as the property was leased to 100% occupancy. The primary tenant is Tire Battery Corporation, a credit worthy national retailer of tires. The property was sold in November 2019 for $10.2 million reflecting a 7.4% cap rate. Investors achieved a strong return with a 15.3% IRR and a 1.9 times equity multiple.