The 413,833 sf Class A Office Building is located in one of suburban Fort Lauderdale’s most desirable locations, and is well poised for continued growth
CLEVELAND, OHIO, July 13, 2020 – Ten Capital Management (“TCM”), a privately held real estate investment management firm, today announced it has completed the acquisition of Bayview Corporate Tower located at 6451 North Federal Highway (“Bayview”). Somerset Properties is a Co-General Partner on the transaction.
The Class A office building is in the Cypress Creek submarket of Broward County. The Property was recently renovated with over $4.8 million in base building improvements over the last three years, and features flexible floor plates that can accommodate tenant requirements ranging from 1,500sf to expansive, contemporary plans as large as 33,500sf. Onsite amenities include a café, conference center, fitness center, amenity lounge, outdoor picnic area, and on-site security and management. The Property offers a 5.0/1,000sf parking ratio in an adjacent five-story structured parking garage and is located close to various dining and retail amenities, and high end residential developments.
Currently, 89.2% leased to 21 high quality tenants, and nearly equidistant between downtown Fort Lauderdale and Boca Raton, the Cypress Creek submarket has averaged only 9.8% vacancy, and is characterized by a high level of household income, high rates of educational attainment, and a high quality of life across a variety of housing options. Affluent estate homes, single family homes at a broad range of price points, coupled with significant multifamily development, provide a variety of housing options for executive decision makers and a more diversified workforce. Over 1,600 multi-family units were delivered over the past five years and another 1,362 are under construction for delivery over the next 12 months. The Property has convenient access to Interstate 95, off-highway access directly to downtown Fort Lauderdale and Boca Raton, and offers panoramic views of the Atlantic Ocean and Intracoastal Waterway.
“Although it’s been a challenging time for commercial real estate, our leasing pipeline remains robust, and with no new construction and CBD tenants seeking more economical options, market vacancy should continue to decline,” said Paul DiSandro, a TCM Partner and Portfolio Manager. “This Property has demonstrated resilience, stability and momentum. Its strategic location, dominant parking amenity and lower-cost alternative advantages have allowed us to improve occupancy even through the pandemic. We believe this pattern will continue.”
Ben Adams, TCM’s CEO, added, “Our focus on fundamental value and the margin of safety first remains our top priority, but it isn’t lost on us that we need to be right about both fundamental value and the flow of funds. We have long believed in a demographic shift as millennials age, create families, and contemplate a life beyond the micro-unit. We believe that COVID-19 is an accelerant to that structural shift as employees migrate to areas with lower cost of living and higher quality of life, and as companies seek access to labor across multiple markets.”
TCM is a privately held real estate firm investing across a broad spectrum of strategies and seeks to deliver consistent, superior risk-adjusted returns to its global investor base, while remaining proactive, adapting quickly to changing market fundamentals and opportunities. TCM makes equity investments between $10 and $35 million, targeting transactions which fall “below the radar” of larger institutional investors. For more information, please go to www.tencapmanagement.com.