Berkadia has secured a $22,491,000 bridge loan for a transformational repositioning of the former Bank of America building at 625 N. Flagler Drive in West Palm Beach, FL. The owners of the 110,000-square-foot office property acquired it late last year in an all-cash transaction with the intent of converting it to primarily medical use, following the departure of its bank anchor tenant. Senior Managing Director Charles Foschini and Managing Director Christopher Apone of Berkadia’s South Florida office arranged the loan on behalf of the borrower group led by FRI Investors whose chief principal is Michael McCloskey.
PCCP, LLC, provided the three-year permanent loan at a competitive adjustable rate floating over LIBOR. The proceeds will be used for the renovation and repositioning of the property from its prior office use to a premier medical center serving the area.
“We took a selective approach to contacting bridge lenders and found an entrepreneurial capital partner in PCCP, enabling our client to execute their vision of bringing quality healthcare providers closer to the West Palm Beach community,” said Mr. Apone. “The new owners now have the necessary capital to execute their business plan of developing a medical or quasi-medical building.”
“We have been fortunate to have a long standing relationship with both Michael and the principals of PCCP,” he added. “We are pleased that we could put them together in a partnership that will be both an enviable business venture and do much good for residents of the island of Palm Beach.”
Built in 1984, the 10-story Class A office building at 625 N. Flagler Drive overlooks the Intracoastal Waterway and sits at the entrance to the newly opened Flagler Memorial Bridge, which connects the island of Palm Beach to the mainland. Bank of America had occupied approximately 40,000 square feet in the property until relocating to a nearby office tower late last year. Recently signed medical tenants include Mount Sinai Hospital and Jupiter Medical Center. The property is approximately 50% occupied.
About Berkadia®:
Berkadia, a joint venture of Berkshire Hathaway and Leucadia National Corporation, is a leader in the commercial real estate industry, offering a robust suite of services to our multifamily and commercial property clients. Through our integrated mortgage banking, investment sales and servicing platform, Berkadia delivers comprehensive real estate solutions for the entire life cycle of our clients’ assets. To learn more about Berkadia, please visit www.berkadia.com.
