Franklin Street Properties Corp. recently sold a 212,182-square-foot office building located at 5505 Blue Lagoon Drive to national homebuilder Lennar for $65 million. This equates to a price of $320 per square foot for the company’s national headquarters.
According to the South Florida Business Journal, this eight-story building was last sold in 2003 for $48 million. In 2019, Lennar signed a lease for 156,000 square feet in the building and moved in shortly after. The property was originally built on a spacious lakeside site measuring at approximately nine acres and has since undergone recent renovations. Amenities such as an inviting lounge area and expansive fitness center are available within its walls.
In light of their fourth-quarter results announcement, which showed increased home sales but also included reduced prices and incentives offered by some markets to maintain volume levels, it is clear that Lennar is making strategic moves amidst rising interest rates. This includes adjusting prices accordingly so that homes remain affordable while maintaining healthy sales numbers.
Like many other production builders out there today who prefer an asset-light strategy with land banks holding onto lots until they are ready to be sold off individually or as part of larger developments or communities; however unlike these competitors who keep corporate offices on their books indefinitely -Lennar does not do so themselves.
