Class A Office in Northern Virginia Marks First Acquisition in Newly Launched Velocis Fund III

Real estate manager to kick off multi-million-dollar value add program to 1530 Wilson Boulevard, located in desirable Rosslyn, VA submarket

ROSSLYN, Va. – Velocis, a private equity real estate manager, has purchased 1530 Wilson Boulevard, a 171,373-square-foot, Class A office building in Northern Virginia’s Rosslyn submarket. The 10-story building was acquired in an off-market transaction from a client represented by Invesco Real Estate and is the first acquisition in Velocis Fund III.

With solid rental rates in place, thanks to the property’s quality and location, Velocis will focus its value-add efforts on attracting new tenants to the property. A multi-million-dollar building improvement program, to begin within the year, will include renovating the lobby and exterior façade, refreshing common areas, upgrading the current fitness center and conference room, and implementing a fully capitalized leasing program.

“1530 Wilson represents an opportunity to acquire a high-quality office asset with significant in-place, credit-worthy cash flow in an irreplaceable location in the Rosslyn submarket,” said Paul Smith, Velocis partner. “Velocis takes a geocentric approach to investing, focusing on select non-gateway markets experiencing rapid population migration and significant job growth. This asset and the Northern Virginia market fit nicely in the Velocis investment strategy. Velocis has made a meaningful commitment to Northern Virginia, and our ability to capture this outstanding asset off-market is exciting to our team.”

Lincoln Property Company’s Washington, D.C. office will continue to lease and manage the property, which is currently 81% occupied.

Rosslyn serves as the gateway to Virginia, and a bridge to the Washington, D.C. downtown central business district. Positioned on Wilson Boulevard, within the Western Wilson Boulevard District, 1530 Wilson benefits from tremendous access, a robust amenity base, and strong employers.

Dallas-based Velocis has been active in real estate since 2010, purchasing 32 assets located in major markets within Arizona, Colorado, Texas, Georgia, Florida, North Carolina, Virginia, and the Washington D.C. Metro Area. Velocis is led by a team of five seasoned partners who are directly responsible for the acquisition, asset management and disposition of assets. Partners in Fund III are Fred Hamm, Mike Lewis, Jim Yoder, Paul Smith and David Seifert.

About Velocis

Velocis is a private equity real estate investment firm, active in the acquisition, operation/management and disposition of commercial real estate in the United States. Additional information about Velocis can be found at velocis.com.  

This does not constitute an offer to sell, or a solicitation of any offer to buy any securities or investment advice, nor is it intended to be a description of all material factors an investor should consider before making any investment. 

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Real Estate Amidst the COVID-19 Pandemic

Velocis Co-Founder Jim Yoder looks to understand how the pandemic is impacting the industry in the short term and what the long-term implications might be.

By Jim Yoder

Over the past few weeks, our world has completely changed–in our communities, our homes, and our places of work. COVID-19 has had an immediate impact on all of us. In the real estate community, we’re looking to understand how the pandemic is impacting the industry in the short term and what the long-term implications might be.

Like many, our team has been working from home for a few weeks now. During that time, we’ve had multiple conversations with real estate professionals around the country to gain consensus on the current situation. Here’s what we’re hearing from them and seeing in our own transactions:

LEASING

New leasing has been spotty as some new and renewal lease transactions are closing, but others are being put on hold. Leasing activity has largely depended on the industry and use. For instance, technology tenants seem to be moving forward. Perhaps this is due to the fact that a mobile model of business is a relatively standard practice for them. Alternatively, businesses in the travel or hospitality industry are in lockdown mode.

One interesting phenomenon we keep hearing is the mutual agreement that folks can’t wait to get back to an office environment. It seems many underestimated the value of the collaboration, sociability, and efficiency an office environment offers, free from the distractions at home.

In a post-COVID-19 world, we may see a change in tenant space needs as companies work to allow for more space per square foot, per employee for personal and safety reasons. Pre-pandemic, the trend had been flowing the other way for several years, toward smaller footprints. However, the new focus on social distancing may help change this pattern. Other long-term space implications could include the modification of closed conference rooms, opening them up to create a lounge-type space that would allow employees more flexibility on how much room they choose to allow themselves between their co-workers in group meetings.

SALES

Most new sales efforts are being put on hold while owners opt instead to wait and see what implications COVID-19 has on the debt market and asset pricing. That said, those sale or purchase transactions that were already in the works are still closing or continuing their way toward closing.

FUNDRAISING

Fundraising has continued to be encouragingly active as investors look for opportunity and diversification amidst volatile markets. Real estate has a relatively low correlation with the stock market and offers a good alternative investment, making it attractive as investors look to pivot from other investments.

MANAGEMENT

Throughout our own asset portfolio across the country (office, retail, and medical office), we have been asked for some consideration from some of our tenants, with retail tenants exhibiting the most strain. Some tenants are having success utilizing the government resources available through the CARES Act, finding those loans are a viable option during this uncertain period. Specifically, the SBA Paycheck Protection Program is allowing tenants to access a loan from the Small Business Association to cover necessities, such as rent, for up to eight weeks.

Throughout the industry, we are seeing hospitality properties feel the most immediate impact, with retail and multi-family assets likely next in line.

OPPORTUNITY

Although most in the industry expected some type of correction in the markets, no one saw COVID-19 coming. That being said, market disruption – while uncomfortable and anxiety-producing – generally creates opportunity. Above all else, this has been the biggest takeaway in our conversations with real estate professionals across the country.

Jim Yoder is co-founder and principal at Velocis.

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Velocis Sells Iconic Fort Worth Shopping Center, Ridglea Village

FORT WORTH, Texas (November 11, 2019)– Velocis, a private equity real estate manager, has sold Ridglea Village, a 112,117-square-foot mixed-use center in Fort Worth’s historic Camp Bowie District.

Built in 1939, Ridglea Village is one of Fort Worth’s most iconic retail properties, recognized for its Spanish-Mediterranean tile roof and distinctive charm. Since acquiring the center in 2011, Velocis has completed a full makeover of the property, restoring it to its original luster. Renovation efforts resulted in long-term lease renewals with some of Ridglea Village’s most prominent tenants, including La Madeleine, European Skincare & Med Spa, Haltom’s Jewelers and FedEx. In addition, the property also welcomed a number of new tenants, including R Taco, Chicken Salad Chick, Campisi’s, Buttermilk Sky Pies and Regen Wellness Spa.

“We purchased Ridglea Village because we saw the unique opportunity to own an iconic, historic Fort Worth asset that we could improve physically and in terms of usability for the surrounding neighborhood,” said Jim Yoder, partner, Velocis. “Ultimately, we were able to execute our business plan for the center, adding significant value to the asset and improving the quality of the tenancy during our hold period.”

Ridglea Village is located at 6040 – 6100 Camp Bowie Boulevard in Fort Worth. The 3.32-acre center is 74% occupied with a diverse and internet resistant mix of destination tenants including Campisi’s, La Madeline, R Taco, European Skincare & Med Spa, Haltom’s Jewelers and more.

Dallas-based Velocis has been active in real estate since 2010, purchasing 31 assets located in major markets within Arizona, Colorado, Texas, Georgia, Florida, North Carolina, Virginia, and the Washington D.C. Metro Area. Velocis is led by a team of five seasoned partners who are directly responsible for the acquisition, asset management and disposition of assets. Partners in Fund II are Fred Hamm, Mike Lewis, Jim Yoder, Paul Smith and David Seifert.

About Velocis

Velocis is a private equity real estate investment firm active in the acquisition, operation/management and disposition of commercial real estate in the United States. Additional information about Velocis can be found at velocis.com.  

This does not constitute an offer to sell, or a solicitation of any offer to buy any securities or investment advice, nor is it intended to be a description of all material factors an investor should consider before making any investment. 

Velocis Sells Class A Office Portfolio in Northern Virginia

STERLING, Virginia (November 11, 2019)– Velocis, a private equity real estate manager, has sold Loudoun Gateway I & II, a two-building, 179,864-square-foot Class A office portfolio in Sterling, Virginia.

Velocis purchased the buildings in 2015, recognizing the potential to be had in the recovering Northern Virginia market. Today, the property is 100% leased to three tenants, including a mission-critical facility for CACI International, a top government defense contractor. In total, CACI leases 160,209 square feet of the portfolio and has recently extended and expanded its lease.

“Loudoun I & II are well positioned to take advantage of the enormous momentum in Northern Virginia’s office market, which is being driven by defense contracting, tech and cyber security.” said Mike Lewis, partner, Velocis. “The success of this property is the result of extensive negotiations to accommodate and grow our anchor tenant  that resulted in selling the portfolio fully stabilized to an investor with a long term hold strategy.”

Loudoun Gateway I & II was developed in 2000 and is located at 45195 and 45200 Business Court in Sterling, Virginia.

Dallas-based Velocis has been active in real estate since 2010, purchasing 31 assets located in major markets within Arizona, Colorado, Texas, Georgia, Florida, North Carolina, Virginia, and the Washington D.C. Metro Area. Velocis is led by a team of five seasoned partners who are directly responsible for the acquisition, asset management and disposition of assets. Partners in Fund II are Fred Hamm, Mike Lewis, Jim Yoder, Paul Smith and David Seifert.

About Velocis

Velocis is a private equity real estate investment firm, active in the acquisition, operation/management and disposition of commercial real estate in the United States. Additional information about Velocis can be found at velocis.com.  

This does not constitute an offer to sell, or a solicitation of any offer to buy any securities or investment advice, nor is it intended to be a description of all material factors an investor should consider before making any investment. 

Kierland One Changes Hands

Scottsdale office building sells to Dallas-based Velocis

Phoenix – October 28, 2019 Kierland One, a 175,441-square-foot Class A office building in Scottsdale, Arizona has a new owner.  Dallas-based Velocis purchased the building from Hines and joint venture equity partner PCCP, LLC (PCCP).

Barry Gabel, Chris Marchildon and Will Mast of CBRE in Phoenix represented the seller in the transaction.

The four-story Kierland One is 90 percent leased and features institutional-quality construction and finishes, including a remodeled two-story lobby, new tenant improvements and high-end spec suites. It has a generous parking ratio of 4.3 spaces per 1,000 RSF. The property includes the global headquarters of a publicly traded engineering and manufacturing company, as well as several other notable financial services, technology, hospitality and residential related companies.

“The quality of the asset and tenancy, as well as the walkable amenities in the Scottsdale Airpark submarket make Kierland One an attractive asset for our investment strategy,” said Jim Yoder, partner, Velocis. “Phoenix continues to be one of the strongest job creation markets in the country, and we are pleased to expand our presence in the market. We look forward to building on the great work that Hines and PCCP accomplished at Kierland One by putting our own Velocis stamp on the property.”

The property offers tremendous Scottsdale Road frontage and is surrounded by numerous first-class amenities, including the high-end shopping and restaurants at Kierland Commons and Scottsdale Quarter and The Promenade among others; the Fairmont Scottsdale Princess Resort, The Westin Kierland Resort & Spa, and the JW Marriot Desert Ridge; as well as countless golf courses.

“Kierland One presented an incredible opportunity for Velocis to continue its investment into the Phoenix market with the acquisition of a high-quality, well-located office asset, offering unmatched access to Scottsdale’s high-end retail, restaurant and hotel amenities, and a diverse and well-educated labor pool,” said CBRE’s Gabel. “We’re happy to have achieved exceptional outcomes for both Hines/PCCP and Velocis — all long-term valued clients of ours.”

Kierland One is located in the Scottsdale Airpark submarket, the second-largest employment hub in metro Phoenix, where there are an estimated 12,000 businesses and more than 145,000 employees. The property’s strategic location provides direct access to the Loop 101 freeway, allowing for access to the large and diverse labor markets of Scottsdale, Phoenix, Tempe, Chandler and Mesa. 

The Scottsdale Airpark submarket consistently outperforms the overall Phoenix market in average rental rate and absorption of office space. At the end of the third quarter of 2019, the submarket’s office vacancy rate dipped to 11.49 percent, falling below the overall Phoenix market vacancy rate of 14.39 percent, according to CBRE Research.

CBRE’s Luke Walker, Brad Anderson and Mike Strittmatter will continue to lease the property under new ownership. Hines will continue to serve as the property manager.

Kierland One is Velocis’ third investment in the Phoenix market in recent years. In 2016, Velocis purchased Park One, a three-building complex in the prestigious Camelback Corridor. In addition, Velocis owned Camelback Square, a three-story Class A office building in the heart of Old Town Scottsdale from 2015 to 2019.

Dallas-based Velocis has been active in real estate since 2010, purchasing 31 assets located in major markets within Arizona, Colorado, Texas, Georgia, Florida, North Carolina, Virginia, and the Washington D.C. Metro Area. Velocis is led by a team of five seasoned partners who are directly responsible for the acquisition, asset management and disposition of assets. Partners in Fund II are Fred Hamm, Mike Lewis, Jim Yoder, Paul Smith and David Seifert.

About Velocis

Velocis is a private equity real estate investment firm active in the acquisition, operation/management and disposition of commercial real estate in the United States. Additional information about Velocis can be found at velocis.com.  

About CBRE Group, Inc.

CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2018 revenue). The company has more than 90,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 480 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.

This does not constitute an offer to sell, or a solicitation of any offer to buy any securities or investment advice, nor is it intended to be a description of all material factors an investor should consider before making any investment. 

Velocis Sells 77 Sugar Creek in Sugar Land, Texas

SUGAR LAND, Texas (July 17, 2019)– Velocis, a private equity real estate manager, has sold 77 Sugar Creek, a 143,410-square-foot Class A office building, to NorthStar Commercial Partners for an undisclosed price.

Located in Sugar Land, one, of Houston’s most sought-after suburbs, Velocis purchased the building in 2017, recognizing the future demands for quality office space in the submarket. Following a strategic repositioning, which included adding an additional 20 percent of occupancy from new tenants, Velocis sold the property in June at a 94 percent occupancy.

“77 Sugar Creek is a perfect example of the Velocis strategy,” said Velocis partner and co-founder Mike Lewis. “We identify assets in our high growth target markets that have dislocation relative to its peers in the submarket. The property had good bones but needed active management to reposition the asset, increase the NOI and then harvest the value. After implementing our repositioning initiatives, we were able to lease up the vacancy way ahead of schedule at rental rates as much as 30 percent above our underwriting achieving our upside underwriting.”

Over the 21-month hold, Velocis transformed the building, rebranding the property from Two Sugar Creek to 77 Sugar Creek. Velocis also upgraded common areas, restrooms and corridors, renovated the lobby and common areas and hired Stream Realty partners to lease and manage the property with an aggressive marketing campaign to reintroduce the much improved and repositioned asset to the market.

Dallas-based Velocis has been active in real estate since 2010, purchasing 30 assets located in major markets within Arizona, Colorado, Texas, Georgia, Florida, North Carolina, Virginia, and the Washington D.C. Metro Area. Velocis is led by a team of five seasoned partners who are directly responsible for the acquisition, asset management and disposition of assets. Partners in Fund II are Fred Hamm, Mike Lewis, Jim Yoder, Paul Smith and David Seifert.

About Velocis

Velocis is a private equity real estate investment firm, active in the acquisition, operation/management and disposition of commercial real estate in the United States. Additional information about Velocis can be found at velocis.com.  

This does not constitute an offer to sell, or a solicitation of any offer to buy any securities or investment advice, nor is it intended to be a description of all material factors an investor should consider before making any investment.

Velocis Purchases Sugarloaf Corporate Center

Three-building office property is Velocis’ fourth buy in the Atlanta market

DULUTH, Ga. – (June 20, 2019) – Velocis, a private equity real estate investment management firm, has purchased Sugarloaf Corporate Center, a three-building, class A master-planned office
park centrally located in the rapidly urbanizing Sugarloaf micro market, northeast of Atlanta.

“Sugarloaf Corporate Center features a well-diversified roll schedule and captive tenancy that offers strong and secure cash-flow at an 8.75 percent going-in cap rate,” said Jim Yoder, partner, Velocis. “This property is a best-in-class office asset located in a submarket that has some of the best demographics and access in metro Atlanta.”

Sugarloaf Corporate Center sits on a 20-acre site within a 62-acre office park and mixed-use development in the heart of Atlanta’s Gwinnett County. Built between 1998 and 2001 and totaling 256,180 square feet, the property is 98 percent leased to 30 high-quality tenants.

In line with Velocis’ value-add investment approach, the fund manager will implement key property upgrades on top of extensive improvements made by the former owner. Enhancements will include an improved outdoor amenity area, including Wi-Fi and music offerings, the addition of on-site food service, cosmetic upgrades to restrooms, a new roof for one of the buildings and other back-of-house improvements.

Sugarloaf Corporate Center is Velocis’ fourth asset in the Atlanta market. The fund manager also owns Parkway at Avalon, a two-building office complex in Alpharetta. Velocis’ previous Atlanta investments include Royal Centre One, an office building in the heart of Alpharetta’s Royal 400 Office Park and 1600 Parkwood, an office building in the Cumberland/Galleria submarket.

Velocis has been active in real estate investment since 2010, purchasing 30 assets located in major markets within Arizona, Colorado, Texas, Georgia, Florida, North Carolina, Virginia and the Washington, D.C. Metro Area. Velocis is led by a team of five seasoned partners who are directly responsible for the acquisition, asset management and disposition of assets. Partners in Fund II are Fred Hamm, Mike Lewis, Jim Yoder, Paul Smith and David Seifert.

About Velocis
Velocis is a private equity real estate investment firm active in the acquisition, operation/management and disposition of commercial real estate in the United States. Additional information about Velocis can be found at velocis.com.

This does not constitute an offer to sell, or a solicitation of any offer to buy any securities or investment advice, nor is it intended to be a description of all material factors an investor should consider before making any investment.

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CREC, Velocis Add Anchor Tenant to WPB Office Tower

CREC and Velocis have signed a 25,000-square-foot lease with Intech Investment Management as the anchor tenant at One Clearlake Centre, a LEED Silver-certified office tower in downtown West Palm Beach, Fla. Intech plans to relocate its corporate headquarters to the 221,079-square-foot property in September 2019.

The investment management firm will occupy the top two floors at One Clearlake Centre. The deal also includes building exterior signage for Intech. Following its long-term tenancy, the company is downsizing and leaving behind 50,000 square feet at CityPlace Tower, according to Yardi Matrix.

Located at 250 S. Australia Ave., One Clearlake Centre was completed in 1986 and is undergoing an expansive renovation program. The multi-million refurbishment includes new lobby areas, corridors and bathrooms, conference center and gym, a creative tenant lounge and CREC’s wellness program known as Deeper Breath. The property also features a five-story, 662-space parking garage.

Occupancy on the rise

Current ownership acquired the 19-story building in July 2017, when the property was 47 percent leased. The addition of Intech brings the property’s occupancy rate to 68 percent. One Clearlake Centre, one of the tallest buildings in the market, is close to the area’s numerous restaurants, entertainment and shopping venues such as Clematis Street and CityPlace. Additionally, TriRail and the recently constructed Brightline station are also nearby.

“Intech truly scrutinized all of their viable options and conducted an intense broad property sweep before they made the decision to select One Clearlake Centre as their new corporate headquarters,” Carol Greenberg Brooks, president & co-founder of CREC, said in prepared remarks. CREC also oversees leasing and management services at the property.

“As we continue to implement our repositioning strategy, we anticipate that leasing momentum will remain strong as tenants continue to flock to downtown West Palm Beach,” added Mike Lewis, principal at Velocis.

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Velocis Sells Royal Centre One in Atlanta Submarket

ATLANTA – (Oct. 2, 2018) – Velocis, a private equity real estate manager, has sold Royal Centre One, a 152,935-square-foot Class A office complex in the Atlanta suburb of Alpharetta, Ga. The Simpson Organization purchased the property for an undisclosed price.

“When we purchased Royal Centre One, we saw an opportunity to invest in a property with not only a premier address, but also unique characteristics,” said Jim Yoder, partner, Velocis. “As with all of our investments, our goal was to identify and unlock value in the property. Our understanding of the local market, along with some patience and restraint, played a major role in our ability to increase occupancy and raise rental rates with minimal investment, and ultimately, dispose of the asset at the optimal time.”

Velocis purchased the property, which is located at in the heart of the Royal 400 master-planned office park, in 2013 and has since raised occupancy from 53 percent to just under 80 percent. The buildings are situated over 12 acres along the GA 400 corridor. The asset offers tenants easy access to amenities including North Point Mall and the Avalon mixed-use development. Samir Idris, David Meline, Andy Johns, Stewart Calhoun and Casey Masters of Cushman and Wakefield represented the owner.

Dallas-based Velocis has been active in real estate investment since 2011, purchasing 28 assets located in markets in Texas, Colorado, Georgia, Florida, Arizona, Virginia, North Carolina, and the Washington, D.C. corridor. Velocis is led by a team of five seasoned partners who are directly responsible for the acquisition, asset management and disposition of assets. Partners in Fund II are Fred Hamm, Mike Lewis, David Seifert, Paul Smith and Jim Yoder.

About Velocis

Velocis consists of two entities: Velocis Funds and Velocis Advisors. Velocis Funds are private equity real estate funds, active in the acquisition, operation/management, and disposition of commercial real estate in the United States. Additionally, Velocis Advisors provides asset management and advisory services to both investors and real estate clients. Additional information about Velocis can be found at velocis.com.

This does not constitute an offer to sell, or a solicitation of any offer to buy any securities or investment advice, nor is it intended to be a description of all material factors an investor should consider before making any investment. 

 

Intech leaving CityPlace for location in One Clearlake Centre

Intech, the longtime anchor tenant of the luxury CityPlace Tower office building, confirmed it plans to move to One Clearlake Centre, west of downtown West Palm Beach.

The deal, in the works for some time and first reported last November, would free up 50,000 square feet of arguably the best office space downtown.

That soon-to-be empty space will be an indicator of whether downtown really needs more luxury office space.

“It’ll be a big test,” said Kelly Smallridge, president of the county’s Business Development Board, the county’s chief recruitment arm.

“It’s very desirable space,” Smallridge said. “I don’t think it’s going to be empty that long. Everybody keeps complaining there isn’t enough office space. And (this amount of) space hasn’t come on the market in a long time.”

Intech’s 17th and 18th floors at CityPlace Tower feature water views and lots of luxury finishes.

Justin Wright, Intech’s chief operating officer and general counsel, said Intech is making the move to One Clearlake next summer for a couple of reasons.

One Clearlake Centre, at 250 South Australian Ave. offers Intech employees, clients and visitors easy access to and from Interstate 95, Palm Beach International Airport, and commuter trains, he said. An added bonus, he said, is that there aren’t any train crossing gates to worry about when heading to the building.

One Clearlake also offers Intech a dedicated generator, which allows Intech to run its business even if power is out in West Palm Beach, as can be the case during hurricane season.

Intech is taking One Clearlake’s top two floors totalling about 25,000 square feet, half the size of its existing office.

The rent is less expensive, too: Rents at One Clearlake are about $26 a square foot, not including about $15 per square foot for taxes, maintenance and insurance. CityPlace Tower, on the other hand, commands rents starting in the mid-$40 per square foot range, plus another $20 for common area maintenance, real estate brokers said.

Intech, the money management firm now owned by Janus Henderson Global Investors, was the signature tenant that first kicked off leasing when the 18-story CityPlace Tower opened in 2008. Intech moved to the tower’s penthouse floors, which are connected via an internal staircase, from a location in Palm Beach Gardens.

Now Intech’s hop over to One Clearlake could raise the profile of this older office tower. The building last year sold for $42 million to Velocis, a private equity real estate manager, in partnership with CREC, a Miami-based real estate company.

In recent months, city and business officials have said there’s a strong need for more space to accommodate businesses wanting to be downtown.

In fact, city commissioners recently approved a new office building plan by the Related Cos. to build a waterfront office tower.

The 275,000-square-foot tower, dubbed One Flagler, will be built next to the First Church of Christ, Scientist along Flagler Drive. At 25 stories, the tower will have soaring views of the Intracoastal, Palm Beach and the Atlantic Ocean.

The public was divided over the project. While some residents extolled the tower’s design and need, others decried the building’s construction on waterfront land that city residents twice voted to keep only five stories.

Brokers throughout the city say demand for new office space isn’t as robust as city leaders and some developers say it is. In fact, many brokers say potential tenants new to the market mostly want small blocks of space, up to about 5,000 square feet.

If built, it’s unclear how quickly One Flagler will fill up, especially since Related Co.’s Ken Himmel said rents will top $50 a square foot, not including another $25 to $30 a square foot in taxes, insurance and maintenance.

But Himmel is optimistic, saying that many tenants own homes in Palm Beach and want to do business in the area. Potential tenants include financial services companies, private equity firms, hedge funds, family offices and wealth management firms, he said.

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