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Bankers Row office building in Palm Beach sells for $9.2 million

Posted On: 10-16-2017

A Palm Beach office building on Royal Palm Way, known to locals as Bankers Row, has sold for $9.2 million, according to the deed recorded Monday by the Palm Beach County Clerk’s Office. Raul A. Pinto Hernandez signed the deed as manager of the Miami-based seller, 231 Royal Palm Way LLC, a Florida limited liability company.

The buyer of 231 Royal Palm Way was Primary Properties Inc., a Rhode Island corporation with an address in Cranston, R.I., the deed shows. Elizabeth A. Procaccianti is president of the company, according to Rhode Island business records.

Built in 1973 in the Palm Beach Regency style, the Class A building has about 11,576 square feet. It is anchored by PNC Wealth Management, which occupies about two-thirds of the building. The other third is vacant, and the lower two floors serve mostly as parking. The property lies one building west of South County Road on the north side of Royal Palm Way.

The seller paid $8.925 million for the building in December 2010, according to property records.

Procaccianti is chief operations officer of Cranston-based Procaccianti Cos., a family business where David Procaccianti is president. The firm is among the largest privately owned real estate investment and management organizations in the country, according to its website. It has a national portfolio of more than 60 million square feet of real estate with a peak capitalization value approaching $7 billion, according to the company.

The buyer may occupy the 3,882-square foot vacant part of the building as an end-user, said Mark Pateman, managing principal of Cushman & Wakefield’s Banyan Boulevard office in West Palm Beach. Pateman and agent Michael Osiecki, also of Cushman & Wakefield, represented the seller’s side of the transaction. Neither Pateman nor Osiecki identified the buyer by name.

The seller has a Miami address on Bayshore Drive. Other managers listed in state business records include Leticia I. Quintero Foyo, Axel Pinto Quintero and David Pinto Quintero.

Pateman and Osiecki were gearing up to begin marketing the building’s vacant space, which had been occupied by PNC Wealth Management until the company chose to relinquish it, Pateman said.

But PNC will continue to lease two-thirds of the building under a long-term agreement, he added, which will produce an income stream for the buyer.

He said the sale was “an excellent result for the seller, and it’s an excellent result for the buyer. You’ve got a great long-term (real estate) hold, especially if you’re going to use the vacancy for yourself,” Pateman said.

Pateman and Osiecki would have marketed the vacant space at $65 per square foot — plus $20 per square feet in operating expenses — under the standard triple-net arrangement, according to an online brochure prepared by Cushman & Wakefield.

Royal Palm Way typically ranks among the country’s most expensive streets for leasing office space. It was ranked ninth-priciest out of 42 U.S. markets in a 2015 study prepared by Chicago-based Jones Lang LaSalle, an international real-estate firm. That rank was unchanged from the firm’s previous study, which was conducted by the firm in 2013.

Over the past few years, a number of financial and other firms have left the island in favor of Class A space in downtown West Palm Beach. Other companies have reduced the size of their offices in Palm Beach. But the island continues to offer a strong appeal to many commercial buyers and lessees, Pateman said.

“There’s a global brand value to the island,” he said. “There are still users who want to be on the island for business or personal reasons.”

Royal Palm Way has been the site of notable transactions. Rescued at the last minute from a foreclosure auction, side-by-side buildings at 230 Royal Palm Way and 240 Royal Palm Way changed hands in January 2016 for $21.45 million in a deal overseen by a federal bankruptcy court.

That same month, a joint venture comprising Palm Beach-based investors paid a recorded $14 million for 221 Royal Palm Way and the J.P. Morgan Building at 205 Royal Palm Way, which were sold via one deed.

Elizabeth Procaccianti and Raul Hernandez could not immediately be reached.

 

 

 

Source: Darrell Hofheinz, October 16, 2017, Palm Beach Daily News

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