Skip to main content Skip to footer

Colliers facilitates the sale of South City Plaza for $51M

The Colliers South Florida Investment Services Team represented the seller in the disposition of the Class A office building in Boca Raton

BOCA RATON, FL | October 7, 2022 – Colliers is pleased to announce the sale of South City Plaza. The four-story Class A office building is located at 1515 South Federal Highway in Boca Raton, FL. Executive Managing Director Mark M. Rubin, Director Bastian Laggerbauer, and Financial Analyst Jake Stauber of the Colliers South Florida Investment Services Team represented the seller, Penn-Florida Companies, in the transaction which closed October 7, 2022. Maria Gomez, President of Powerful Real Estate LLC., represented the buyer, Renaissance Properties, in acquiring this trophy office tower.

“The interest from buyers seeking high-quality office investment properties in South Florida remains strong and steady,” said Rubin. “This transaction is a testament to the strength and fundamentals of the Boca Raton office market.”

The 179,837 square-foot building is situated on a premier 3.66-acre parcel near the bustling downtown core of Boca Raton. The property offers monument signage opportunities that are visible along Federal Highway providing exposure to over 33,000 travelers per day. South City Plaza boasts a highly coveted location between two of South Florida’s most traveled thoroughfares, the Federal Highway and Dixie Highway. The office tower is less than a five-minute drive from Penn-Florida Companies’ $1.2 billion-dollar redevelopment project, Via Mizner. The mixed-use project will feature a Mandarin Oriental Hotel, luxury apartments, private condominium homes, retail space, and a golf course spanning three towers connected by a sky bridge. Recent developments in Boca Raton’s downtown core further position South City Plaza as a prime investment asset in a high-growth market. Additionally, the construction of a Brightline stop soon will further underline the building’s future value retention and growth.

“Even amidst an evolving and challenging debt market, our team relished the opportunity to work alongside sophisticated counterparts on both sides that have successfully acquired and repositioned assets in high-demographic markets across the U.S.,” said Laggerbauer.

The buyer, Renaissance Properties, is a New York-based commercial real estate firm led by Kenneth and Bradley Fishel. The family-run organization is a leading owner and manager of more than one million square feet of commercial space throughout New York and Southern Florida. The company plans to reposition and inject capital into the property to solidify its positioning as a trophy Class A asset within the East Boca Raton submarket. 

The seller, Penn-Florida Companies, is an innovative real estate owner and developer focused on enhancing life experiences through its portfolio of unique commercial, residential, and hospitality properties. The Boca Raton-based firm owns and operates millions of square feet in existing assets, while developing various prominent projects.

As the second largest city in Palm Beach County, Boca Raton draws residents, tenants, and investors with its high quality of life, growing population, educated workforce, and friendly business environment. The influx of finance and technology firms from high tax-burdened northeastern states has helped to compress the vacancy rate down to a ten-year low of 9.8% and an all-time high rental rate of $41.54 per square foot. These strong market fundamentals have also attracted investors to Boca Raton setting a record office sales volume in 2021 at $922 million. So far in 2022, Boca Raton has seen $345 million in office investment sales, with the price per square foot reaching $248. Historically, private and institutional investors have been majority buyers; however, in 2022, the dynamic shifted with more cross-border investors. This trend is expected to continue as overseas investors seek stability and hedge against inflation in the U.S.  


Related Experts

Mark M. Rubin

Executive Managing Director

Boca Raton

I am an Executive Managing Director at Colliers International and senior member of the South Florida Investment Services Team primarily focused on the sales and leasing of commercial properties in South Florida.  For over 30 years I have successfully worked with clients to meet their commercial real estate needs. Whether buying, selling, leasing or financing real estate assets, I am consultative and client-centric, creatively structuring transactions and strategies to meet my client’s investment objectives. With involvement in over $3 billion of transactions across all asset classes, I have worked with investors of all types including institutional investors, high net worth private clients, developers and financial institutions in South Florida.

Prior to joining Colliers, I  served as a Principal of Avison Young and member of its Florida Capital Markets team. Prior to that, I  held senior leadership positions with Newmark Knight Frank, Amerivest Group, Savills Studley and JLL.

View expert

Jake Stauber

Associate | Financial Analyst

Boca Raton

As the Financial Analyst on the Colliers | South Florida Investment Services Team, I focus on the financial analysis, underwriting and preparation of marketing materials for the sales and leasing of investment properties in the South Florida market. I use my extensive comparative market knowledge to help in canvassing the market for qualified buyers.

Prior to joining Colliers, I successfully earned my Bachelor’s Degree in Real Estate from The Florida State University in 2018. Upon graduating, I began my career with CBRE as a Research Analyst in Jacksonville, FL, where I was responsible for the local Office and Industrial market. Concluding my time in North Florida, I was relocated to CBRE’s Miami office, where I was the local research lead for the Miami-Dade, Broward and Palm Beach County Industrial markets. (± 380.0 million square feet).

View expert

Bastian Laggerbauer

Director

West Palm Beach

As a Director, my focus is primarily on investment sales and providing the highest level of service to my clients throughout the South Florida region. I am proficient in valuating assets of all property types and implementing financial analysis through Argus Enterprise and Excel. During my tenure at Colliers international, I have been involved in deals exceeding a combined value of $350 Million. I have also engaged in select landlord representation, which has only enhanced my experience and ability to fully valuate and transact both income-producing and distressed assets.

My professional accomplishments include researching and analyzing historic and current data for the retail, office and industrial sectors in each submarket and creating individual, detailed reports for all three sectors in the tri-county area of South Florida.  I also earned my Argus Enterprise certification to further enhance my skills, while earning my Bachelor’s Degree in International Business from Northwood University in 2015 and my Master of Science in International Real Estate from Florida International University in 2016. 

I was born in Munich, Germany, where I have family ties to Colliers International. My family founded the Munich office and I subsequently completed an internship before moving to the USA. My time in the Munich office only made me eager to further my experience in the industry and drove my decision to move to Florida to pursue my degrees, while working in the Palm Beach Gardens office. 

View expert