Butters Construction & Development and PEBB Enterprises have acquired two multi-tenant office buildings in Boca Raton in a $26.15 million transaction. The purchase adds nearly 60,000 square feet of office space to the firms’ combined portfolios and reflects their continued focus on income-producing commercial assets.
The two buildings together total 59,667 square feet and are currently 75% leased. The existing occupancy provides in-place cash flow while leaving room for Butters and PEBB to capture additional upside as they lease the remaining vacancy.
Following the acquisition, Butters and PEBB plan to implement a program of strategic upgrades and repositioning at the properties. The sponsors intend to enhance the assets in a way that strengthens their competitiveness in the Boca Raton office market and supports efforts to attract new tenants.
Abanca provided the acquisition financing for the purchase. The involvement of a lending institution in the capital stack underscores the ability of the sponsorship to secure debt for value-add office investment in the current environment, with lender support backing the repositioning strategy.
The sale was brokered by Douglas Mandel of Marcus & Millichap’s Institutional Property Advisors division, together with Zach Levine and Cody Hershey, who represented the seller, BOA 520 LLC. On the buy side, attorney Christopher Staller of Nelson Mullins Riley & Scarborough LLP represented Butters Construction & Development and PEBB Enterprises in the transaction.
Butters brings a long track record to the deal, having built more than 28 million square feet of commercial real estate valued at over $5 billion during its 36-year history. PEBB adds complementary experience, having completed more than 5 million square feet of transactions totaling more than $3 billion in value over the past decade.
The combination of in-place occupancy, planned upgrades, and institutional sponsorship positions the two Boca Raton office buildings for an active asset management and leasing program as Butters and PEBB seek to stabilize and enhance the properties over time.
