An affiliate Stiles Corp. has acquired the Gardens Plaza office building in Palm Beach Gardens for $23 million. Built in 1987, the 96,920 square-foot office building was sold by Realty Associates Fund VII, part of Boston-based TA Realty for $237 per sq ft. The asset cost the vendor $25 million in 2006. Tenants of the building, which is 82 percent leased, include BNY Mellon, IMG Worldwide, Northwestern Mutual and Janney Montgomery. The deal was financed with an $18.1 million mortgage from PNC Bank, while the land the building stands on could have another office building constructed on it.
Stiles Property Fund portfolio manager Kyle Jones said “We were attracted to this investment because it is an extremely well-located asset with a track record of attracting the top tenants in the market, and we were able to acquire it below replacement cost. We will primarily focus on enhancing the existing building, but we will also explore the potential of the existing entitlements when the time is right.”
