Palm Beach office buildings trade for $35M

MIAMI, April 12, 2022 – JLL Capital Markets announced today that it has closed the $35 million sale of 340 & 350 Royal Palm Way, adjacent boutique Class A office buildings totaling 44,625 square feet in Palm Beach, Florida.

JLL represented the seller, Pearlmark, and procured the buyer, CS Ventures.

340 Royal Palm Way features 20,813 square feet of office space in a four-story building while 350 Royal Palm Way has five stories and 23,812 square feet of office space. The 350 building is 100% leased and the 340 building is well-positioned for strong revenue increases through lease-up. In total, the properties offer 146 parking spaces in a mix of covered and surface spaces.

The properties are located in the highly exclusive town of Palm Beach along “Bankers Row”, which is home to numerous wealth management companies, banks, family offices, law firms, hedge funds and private equity funds. The buildings are also close to Palm Beach International Airport, Florida’s Turnpike and Interstate 95 providing regional access to and from the property. Palm Beach is one of the top performing office markets in the state and is predicted to remain on that trajectory due to the continued in-migration of wealth and high net worth companies to the area.

JLL’s Capital Markets team representing the seller was led by Ike Ojala, Hermen Rodriguez, Matthew McCormack, Max Lescano, Blake Koletic and Michael Roukis.

“The town of Palm Beach is a highly exclusive enclave that has seen tremendous in-migration of wealthy families and companies, resulting in high demand for the limited inventory of available office space on the island and strong investor interest,” Ojala said.

“We are very excited to announce the addition of 340 and 350 Royal Palm Way to our growing Palm Beach portfolio and look forward to commencing our business plan for the properties, which will include significant building upgrades and the lease-up of some of the last remaining premier office availability on Royal Palm Way,” Spencer Schlager of CS Ventures said. The current CS Ventures Palm Beach office portfolio is 100% leased.

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.

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Pearlmark is a principal-oriented, private equity real estate investment firm that pursues domestic, value-added investment strategies through a series of institutional equity vehicles.  Since its inception in 1996, the firm has made 558 office, industrial, retail, multifamily and mezzanine loan investments nationwide, representing a gross investment of $13.7 billion.  To date, Pearlmark and its partners, including insurance companies, public and private pension funds, foundations and endowments, banks, corporations, and high net worth individuals and families, have committed $5.3 billion of equity capital to the firm’s investment activities. The company currently employs 20+ professionals and is based in Chicago. For more information, please visit: pearlmark.com. 

CS Ventures (“CS”) is a joint venture between Spencer Schlager and Charles Rosenberg of Rosemark Management. Following the acquisition of 340 and 350 Royal Palm Way, the CS Palm Beach Island portfolio will include six buildings totaling over 150,000 SF of office, retail and multifamily. Other Class A Bankers Row buildings owned by CS include 440 Royal Palm Way and 324 Royal Palm Way.