Colliers South Florida recently completed the acquisition of 4601 N. Congress Avenue in West Palm Beach. The property was sold to 1460 Russell Road Associates, LP, while Colliers’ South Florida Investment Services Team of Mark M. Rubin, Executive Managing Director and Bastian Laggerbauer, Director, represented the seller, 4601 North Congress, LLC, in the transaction.
The building at 4601 N. Congress is an on-campus, multi-tenant medical office building. Not being held to a ground lease enabled the seller to generate significant interest from a wide range of institutional and private investors across the country to produce market-leading pricing for the seller.
“As medical care is an essential service, coupled with South Florida’s favorable demographics, medical office opportunities remain a highly coveted asset class by investors,” says Rubin.
According to the Colliers Q2 Office Market Report for Palm Beach County, total vacancy rates decreased to 11.4% in the second quarter, the lowest vacancy rate in the market since the same quarter of 2020. At the same time, rental rates increased to $36.53 per square foot, increasing 7% year-over-year. The increase is expected to continue as more businesses migrate to Palm Beach County to seek properties with a robust tenant rate.
“Strategically located just off I-95 in the HCA owned and operated JFK Medical Center North Campus on the corner of Congress Avenue and 45th Street, the medical office building was 88 percent leased at the time of sale,” Laggerbauer says.