Boca Raton Chamber of Commerce: MHCommercial Real Estate
MHCommercial Real Estate Fund and Contrarian Capital Management acquire Lakewood Ranch Office Property from The Dilweg Companies – 9000 Town Center Parkway – for $ 20,250,000
West Palm Beach, Florida – MHCommercial Real Estate Fund LLC (“MHC”), a Florida-based discretionary private real estate fund, has formed a joint venture with Contrarian Capital Management, LLC (“Contrarian”), a Connecticut-based hedge fund, to 9000 Town Center Parkway, a 101,312 SF, Class A office building in Lakewood Ranch, Florida, for $ 20,250,000.
Rick Brugge, Mike Davis, Rick Colon and Dominic Montazemi of Cushman & Wakefield represented seller The Dilweg Companies on the transaction with the assistance of Zach Eicholtz and Brooke Tulley. “9000 Town Center is a high quality Class A office property in a high entry barrier location within Lakewood Ranch,” said Brugge.
9000 Town Center, a two-story building, was originally developed as a single-tenant build-to-suit in 1998 and until recently was exclusively occupied by TriNet USA, Inc. (NASDAQ: TNET). The property is located east of I-75 on 11.28 acres within the proposed Lakewood Ranch master parish with a parking ratio of 5.84 / 1,000 SF.
The 75% inhabited property is the fourth acquisition for MHC, which was made in the fall of 2019 by Neil E. Merin, SIOR, CCIM, Jordan Paul and Dung Lam, Principals of West Palm Beach, Florida, NAI / Merin Hunter Codman, Inc., Founded . partnered with Florida-based real estate veteran Joe Sprouls to acquire high-yielding properties with strong cash flow potential in dynamic markets across the Southeast. Corey Winsett, MHC Director of Acquisitions and Asset Management, led the due diligence for MHC in collaboration with Grant Fridkin Pearson, PA, who acted as advisor to the buyer under the direction of Richard Grant and Charles Whittington.
“We are pleased to have successfully completed this transaction in a challenging environment,” said MHC Director Jordan Paul. “This asset fits perfectly with the MHCommercial Real Estate Fund’s investment strategy of acquiring high-quality real estate in growing southeastern markets. The property benefits from the strong creditworthiness of the current tenancy as well as from considerable increases in value through the letting of the currently available space in a market that is in great demand for office space. We are particularly pleased to have an exceptional financial partner who shares our investment thesis. “
The project is representative of an ongoing relationship between MHC and Contrarian in terms of value-adding office purchases in South Florida. Contrarian, a Connecticut-based fund with over $ 5 billion in assets under management, has specialized in opportunistic real estate investing for 30 years with one of the most stable management teams in the industry.
The project was financed by Servis1st Bank under the direction of the President of SW Florida, Mario Bringas. MHC Director Dung Lam, who structured the financing with Servis1st Bank, said: “We are delighted to close our first loan with Servis1st Bank, which will allow us to realize the potential of this asset bank.”
NAI / Merin Hunter Codman will provide property management leasing services for the new property from Steve Horn, CCIM and Director of Ian Black Real Estate, Inc.
Steve Horn and Melissa Harris will oversee the leasing for the company and can be contacted at 941-906-8688.
This press release was prepared by the Boca Raton Chamber of Commerce. The views expressed here are your own.