Velocis Snags WPB Office TowerJuly 24, 2017
Velocis has completed the purchase of One Clearlake Centre, a 218,461-square-foot, Class A office tower in West Palm Beach, Fla. Joint venture partner CREC will provide management and marketing services at the 18-story property. CBRE represented the seller, AEW Capital Management, in the transaction, while also procuring acquisition financing on behalf of the borrower/buyer.
The new ownership plans to invest into a multi-million-dollar capital improvement project and implement an active marketing program. Renovations at One Clearlake Centre will include new public spaces such as lobbies, corridors and bathrooms, as well as the creation of a tenant lounge and a new conference center. In addition, the modernization plan will entail the development of multiple spec suites to cater market demand for move-in-ready spaces.
“Green” office environment
The LEED Silver certified asset sits on a 2.9-acre site at 250 S. Australian Ave. and was completed in 1986. The property features 24/7 on-site security, conference center, on-site café and a five-story, 662-space parking garage. According to Yardi Matrix, One Clearlake Centre underwent significant upgrades under previous ownership in 2008 and is ENERGY STAR-rated.
Vice Chairman Christian Lee and Senior Vice President José Lobón of CBRE’s Capital Markets team worked on behalf of AEW, while Amy Julian, vice president in CBRE’s Debt and Structured Finance division, represented the buyer in financing the transaction. The property previously traded in 2005, when AEW acquired it for $38.6 million from VEF Advisors, Yardi Matrix shows.
One Clearlake Centre provides access to Interstate 95 and offers proximity to Clematis Street, CityPlace, restaurants, several shopping and entertainment venues, TriRail and the newly constructed Brightline station.
“At just 47 percent leased, One Clearlake Centre offers Velocis the opportunity to acquire a well-located, Class A asset at a significant discount to replacement cost,” said Mike Lewis, Velocis principal, in a prepared statement. “A planned, strategic repositioning program will bring this property in line with market standards, increasing its attractiveness to tenants. Having a local joint venture partner in CREC increases our confidence in this building’s potential,” he added.