Acquisition Marks Broward County's Most Significant Office Transaction in a Decade
Lone Star Funds ("Lone Star") today announces that an affiliate of Lone Star Real Estate Fund VII, L.P., along with an affiliate of Highline Real Estate Capital LLC and Square2 Capital LLC, has acquired 401 East Las Olas Boulevard ("401"), marking the most significant office acquisition in Broward County in the past decade. Terms of the transaction were not disclosed.
The 23-story, 410,561-square-foot Class AA office and retail tower-also known as Bank of America Plaza at Las Olas City Centre-sits on a full city block in the heart of Fort Lauderdale's Las Olas Financial District. The property is home to a premier tenant roster, including Bank of America, Greenberg Traurig, Boies Schiller Flexner, Motorola Solutions, and UBS.
"We see a unique opportunity to invest in high-quality office assets that are among the best in their competitive set," said Jérôme Foulon, Global Head of Commercial Real Estate at Lone Star. "The South Florida office market has strong underlying fundamentals, driven in part by in-migration trends and return-to-work mandates. At the same time, since new developments have all but stopped in recent years, some markets are experiencing shortages of office space in quality assets."
"This acquisition represents our confidence in high-quality, well-located office assets that continue to demonstrate strong leasing fundamentals," said David Moret, President of Highline Real Estate Capital. "401 has maintained an average occupancy of 94 percent since its inception and is positioned to continue to benefit from the evolving office market."
Jay Caplin, Principal at Square2 Capital, added "with our previous repositioning success at 501 515 Las Olas Boulevard, we are confident we can amplify 401's position as one of the most sought-after office towers in the state. Planned improvements will build upon 401's status as the most amenitized office property in downtown Fort Lauderdale, featuring six on-site restaurants, a fitness center, and full-service banking." Square2 Capital will manage the property for the new owner under the direction of Principal Mike Manno.
CBRE represented the seller, a global investment manager, in the sale transaction. Financing was arranged on behalf of the new owner by CBRE.
About Lone Star
Lone Star is a leading private equity firm advising funds that invest globally in corporate equity, credit, real estate and other financial assets. Since the establishment of its first fund in 1995, Lone Star has organized 25 private equity funds with aggregate capital commitments totaling approximately $95 billion. The firm organizes its funds in three series: the Opportunity Fund series; the Commercial Real Estate Fund series; and the U.S. Residential Mortgage Fund series. Lone Star invests on behalf of its limited partners, which include institutional investors such as pension funds and sovereign wealth funds, as well as foundations and endowments that support medical research, higher education, and other philanthropic causes. For more information regarding Lone Star Funds, go to www.lonestarfunds.com.
About Highline Real Estate Capital and Square2 Capital
Miami-based Square2 Capital and Highline Real Estate Capital are real estate investment and operating firms specializing in value-add retail, office, and mixed-use assets throughout Florida and the Southeastern United States. Their success is driven by a highly focused, micro-level investment approach and the ability to leverage deep industry relationships and decades of experience. The lead principals have been investing and operating in Florida for over 40 years, with a distinguished track record of acquiring and repositioning office properties throughout Florida, and in Downtown Fort Lauderdale, notable projects include Courthouse Commons and Las Olas Square (501-515 E. Las Olas Blvd.).
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Contacts:
Mediarelations@lonestarfunds.com
