Related Ross paid $64M for North 40 office complex in Boca Raton

Related Ross paid $64 million for North 40, a 380,823-square-foot office complex in Boca Raton, Florida, its second purchase in the city in about two months, Commercial Observer reported Oct. 20.

The price works out to about $168 per square foot across both buildings, or roughly $227 per occupied square foot at the complex's 74 percent occupancy. About 99,000 square feet, or 26 percent, was vacant.

Mainstreet Capital Partners and Partners Group sold the property at 5201 Congress Avenue, near West Yamato Road and west of Interstate 95, about a mile from a Tri-Rail station. The joint venture renovated the 23-acre asset, adding a shared kitchen, a bar, conference rooms and a fitness center. JLL's Hermen Rodriguez, Matt McCormack and Ike Ojala represented the sellers.

The purchase came about two months after Related Ross paid an undisclosed amount for the 124-acre BRiC office campus, which is less than a mile from North 40. Commercial Observer described BRiC as a Marcel Breuer-designed property with 1.7 million square feet of office space and said the developer plans to add retail space and housing there.

"Together, these two properties create an opportunity to invest in a connected and thoughtfully planned destination in one of South Florida's most strategic locations with direct access to I-95, the Tri-Rail, and Florida Atlantic University," Jordan Bargas, an executive vice president at Related Ross, said in a statement.

PRED records show Palm Beach County approved a $300 million Related Ross convention hotel in September, and the developer separately bought Wellington land for a village center carrying a $29.1 million Starwood loan. The Commercial Observer report said Ross has become the biggest owner of Class A office buildings in West Palm Beach and that two office developments are under construction after securing $772 million in financing.