Congress Corporate
Park II- 902 Clint Moore Road,
Boca Raton, FL 33487

Building information:

  • Address: 902 Clint Moore Road, Boca Raton, FL 33487
  • Square Feet: 103,000 SF
  • Owner: Congress Corporate Plaza II, LLC
  • Tenants: Multi- Tenant

Terms:

  • Type: Class B
  • Developer: Trammel Crow was the original developer
  • General Contractor: N/A
  • Master Architect: N/A

THE OPPORTUNITY

As the recession took its course, the occupancy of the project was less than 60% and many of the existing tenants were struggling. The property was well located on the hard corner of Congress Ave and Clint Moore Road. The single-story Class B asset was on the upper end of the quality spectrum compared to its competitive set. Access to multiple fiber optic providers steps from the building made the building attractive to technology companies and those with heavy data needs. Compared to other midrise buildings in nearby submarkets, the building offered the efficiency of “no loss factor,” a single story with no overtime HVAC charges.

THE BUILDING HISTORY

With Leo Ghits at the South Florida reins of Trammel Crow, he developed this remarkable building and several others in the South Florida area. Mr. Ghitis exited his position at Trammel Crow, formed a new company, and purchased this asset as part of an investment group and retained Trammel Crow for the property management that later became CBRE as part of a merger. Tyler Harrison, a Managing Principal with Equistone Partners, commenced his involvement in the project in 2008 while at CBRE. Tyler Harrison worked on the project over multiple years through a recessionary time, but decided to be a part of the growth and expansion of Equistone Partners in Florida and exited his position at CBRE in 2014. The value that Tyler created from 2008 –2014 at the helm was recognized by the property owner evidenced by a decision to retain Mr. Harrison and Equistone Partners on the assignment, which was a true testament to Mr. Harrison and the value created due to his involvement

THE SETTING

Congress Corporate Park II is a single-story office building built in the mid 1980’s in the North Boca Raton Submarket. When this building was developed by Trammel Crow a majority of the businesses were supporting IBM,which had a large corporate presence in Boca Raton. The Boca Raton Office market has grown to be one of the largest suburban office markets in South Florida.

THE PROCESS

The long-term relationships of the existing Tenants were capitalized and, in some cases, rental rates were reduced prior to lease expirations in exchange for longer lease terms. Rental rates for new deals were adjusted to be an economic alternative to other class A Boca Raton office products. Additionally, Operating Expenses that are passed through to Tenants were reviewed with a fine-tooth comb and trimmed to further reduce occupancy costs for tenants. As the market recovered, rental rates were again pushed back up over pre-recession levels.

THE STRATEGY

Occupancy levels needed to be increased and existing tenants needed to be retained and Equistone Partners was up for the challenge. Prospective tenants looking to downsize from larger spaces were targeted, as well as tenants looking to reduce occupancy costs by moving from Class A midrise buildings to Class B single story office products.

THE RESULT

In 2019 Congress Corporate Plaza was sold as part of a portfolio sale 100% leased, which is a testament to Equistone’s success in attracting and retaining tenancy. The new ownership group engaged Cushman Wakefield who worked on every other building they owned across the country. A decision to retain Mr. Harrison and Equistone was considered. After several meetings during the due diligence process, the new ownership group decided Mr. Harrison and Equistone Partners was the premium choice in the market to continue with leasing operations after closing. The property would see a third change of ownership, but would retain value through Mr. Harrison’s continued involvement. Every lease that was completed post-closing exceeded the proforma of the building.