- Related Ross paid $64 million for North 40, a 380,823 SF, two-building office complex at 5201 Congress Ave. that is 74% occupied, from Mainstreet Capital Partners and Partners Group.
- The sellers renovated the 23-acre, 1984 property with a shared kitchen, bar, conference rooms and fitness center, and it sits less than a mile from the BRiC campus.
- The pairing gives Related Ross a connected Boca Raton footprint beside I-95, Tri-Rail and Florida Atlantic University, and fits Ross’s push to build Palm Beach County into a business hub.
Stephen Ross is adding to his Boca Raton office holdings. Related Ross, his firm, has bought North 40, a Boca Raton office complex, for $64 million, Commercial Observer reports.
The two-building property totals 380,823 square feet, and it is the firm’s second Boca purchase in roughly two months.
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The Property
North 40 includes two buildings at 5201 Congress Ave. The complex sits just west of Interstate 95 and about one mile from Tri-Rail. Built in 1984, it is currently 74% occupied.
Meanwhile, sellers Mainstreet Capital Partners and Partners Group upgraded the 23-acre campus. Improvements include shared kitchen space, a bar, meeting rooms and a gym.
Second Boca Bet
Just two months ago, Related Ross acquired the 124-acre BRiC campus for an undisclosed sum. The property lies less than a mile away. It features a Marcel Breuer-designed complex with 1.7 million square feet of office space.
Related Ross Executive Vice President Jordan Bargas said the two sites could form a connected, master-planned destination. Their proximity to I-95, Tri-Rail and Florida Atlantic University could support that vision. In addition, retail and housing are planned at BRiC.
Who Brokered It
JLL’s Hermen Rodriguez, Matt McCormack and Ike Ojala handled the sale for the sellers. However, the timing and price of the joint venture‘s own purchase remain unclear.
Why It Matters
Ross aims to turn Palm Beach County into a major business center. He is already West Palm Beach’s largest Class A office landlord. Furthermore, two office projects are under construction there following $772 million in financing.
Other buyers are also active across South Florida. For example, recent Fort Lauderdale office deals show that investors continue to pursue the region’s office market.
What’s Next
Watch how quickly Related Ross leases North 40’s remaining 26% of vacant space. Also, track what the company develops at BRiC. Ultimately, adding retail and housing could transform the office park into a mixed-use district.
