CBRE arranged the sale and financing of Quorum Business Center, a best-in-class 408,000-square-foot distribution and office portfolio located just south of Boca Raton in the Deerfield Beach submarket of Fort Lauderdale. Quorum Business Center was acquired for $51m by Ivy Realty of Greenwich, Connecticut, from KTR Capital Partners from New York city. Quorum was 87% occupied at the time of acquisition.
“The Broward industrial market is moving at a rapid pace, and Quorum is no exception. There has been 104,876 square feet of leasing activity at the property in 2014 year to date, with 82% of this activity representing new deals,” explained José Lobón, CBRE Senior Associate. “In the five months since the property was initially underwritten through closing, occupancy has increased 500 bps and market rents have risen between $0.25 to $0.50 per square foot.”
KTR acquired Quorum Business Center in October 2005. Since then, KTR has executed 154 leases and injected nearly $4.5 million in tenant improvements into the space. With 3 years of average remaining lease term at disposition, KTR positioned the property to market for sale in light of the strengthening Broward County industrial market.
“Ivy is thrilled to cross the 1 million square foot mark in Southeast Florida with this latest acquisition,” remarked Roy Rosenbaum, Vice President of Investments for Ivy Realty. “Quorum represented the rare opportunity to acquire a Class A property with both strong in-place cash flow as well as significant upside potential given the rapidly growing market and the property’s excellent location and access characteristics,” said Mr. Lee.
