Major Investment Shake-Up: The Press Complex in West Palm Beach Acquired for $80 Million

In a significant move for South Florida’s real estate market, Pebb Capital and Sabal Investment Holdings have acquired The Press, an office and retail complex in West Palm Beach, from Miami-based Tricera Capital. This off-market deal, involving a complex of properties at 2751 South Dixie Highway, marks a notable shift in the local commercial real estate landscape.

Details of the Acquisition

Pebb Capital, based in Boca Raton, and Sabal Investment Holdings, headquartered in Irvine, California, have purchased The Press for nearly $80 million, which includes both the acquisition cost and planned capital improvements. While the exact purchase price has been subject to some discrepancies, with sources suggesting a figure around $70.2 million and other estimates around $60 million, the total investment is expected to be around $80 million. This includes an additional $7 million that may be required if a 3.7-acre vacant parcel, part of the purchase, is rezoned for development.

The Press, which spans approximately 257,000 square feet, was originally developed on the site of the former Palm Beach Post campus. It currently features a mix of office and retail spaces. The complex is about 70 percent occupied, with tenants including Amped Fitness, Palm Beach Atlantic University, Joseph’s Classic Market, Pink Steak, Starbucks, Restore, and Tremble Pilates, among others.

Planned Renovations and Improvements

The new owners plan extensive renovations to the property. Their plans include upgrading the office building’s common areas, enhancing the landscape and hardscape, and completing speculative office suites. These improvements are aimed at attracting a wider range of tenants and boosting occupancy rates. The investment in capital improvements is expected to enhance the appeal of The Press to potential businesses and retail operations, further solidifying its position as a key asset in the region’s commercial real estate market.

Impact on South Florida Real Estate Market

The acquisition and subsequent redevelopment of The Press bring several positive implications for the South Florida real estate market:

1. Increased Investment in Commercial Real Estate:

The substantial investment in The Press highlights a growing confidence in the South Florida commercial real estate market. This kind of significant capital infusion into property renovations and improvements often signals a bullish outlook on the region's economic prospects, potentially attracting additional investors and developers to the area.

2. Enhanced Property Values:

The planned upgrades and renovations are likely to increase the property’s value, benefiting the local real estate market. As The Press becomes more attractive to high-quality tenants, its improved occupancy rates and enhanced amenities could drive up the value of similar properties in the area.

3. Boost to Local Economy:

The renovation of The Press is expected to create jobs in construction, property management, and other related sectors. Furthermore, by attracting new tenants, the property will contribute to local economic growth through increased business activity, which can have a ripple effect on surrounding businesses and services.

4. Revitalization of West Palm Beach Area:

With The Press being a prominent office and retail complex, its redevelopment will contribute to the overall revitalization of the West Palm Beach area. Improved properties attract businesses and consumers, which can lead to a more vibrant and economically active neighborhood.

5.  Increased Demand for Nearby Real Estate:

The enhancements made to The Press could drive up demand for nearby commercial and residential properties. As the complex becomes a hub for businesses and retail, the surrounding real estate market might see increased interest from investors and potential tenants, boosting property values and spurring new development projects.

Context of the Acquisition

Tricera Capital, led by CEO Ben Mandell, had initially acquired the 11.6-acre property in 2019 for $24 million and subsequently invested in its development. The firm’s recent activities, including acquiring distressed assets, reflect a broader trend of opportunistic investing in South Florida amidst economic uncertainties and rising interest rates.

Pebb Capital, led by managing principal Todd Rosenberg, has been active in South Florida’s real estate market, recently securing a $173 million construction loan for the Sundy Village project in Delray Beach. Sabal Investment Holdings, under CEO Pat Jackson, also brings substantial expertise in investment management, particularly in institutional investments.

The acquisition of The Press by Pebb Capital and Sabal Investment Holdings represents a significant investment in the West Palm Beach commercial real estate market. With nearly $80 million earmarked for the purchase and renovations, this development is set to enhance the property’s value and appeal, contributing positively to the local economy and real estate sector. The investment underscores a growing confidence in South Florida’s commercial real estate market and could spur further developments and investments in the region.