Bank Sells Repossessed Office Property for $14M

After three years of repossession, the Renaissance Commons office building in Boynton Beach was sold for $13.9 million to IMC Equity Group.

The bank seized the office, retail and self-storage space in Renaissance Commons in 2013 after foreclosing on the $47.2 million mortgage of Boynton Development Associates II. In November 2015, Wells Fargo sold the retail component for $18.2 million to an affiliate of New York-based Cohen Commercial Properties.

Now, Wells Fargo affiliate Redus One sold 113,000 square feet of self storage and 92,328 square feet of office space at 1880 N. Congress Ave. and 1500 W. Gateway Blvd. to North Miami Beach-based IMC Equity Group for $13.9 million in cash. The deal was brokered by Stiles Realty's Dan Coyle and Brian Batchelder. They also brokered the retail sale in 2015 and they've been leasing and managing Renaissance Commons since 2014.

"This mix of uses presented an excellent and rare opportunity in the thriving Boynton Beach market," Coyle said. "Renaissance Commons benefits from excellent leasing fundamentals and a synergy with surrounding retail and residential areas, both of which will help to drive substantial growth of NOI [net operating income] over the next ten years."

The self-storage center is managed by Cubesmart.

IMC Equity Group, which has acquired $60 million in property so far this year, will now manage the office space.

"We plan to immediately and aggressively rent the current vacancy of the office units (about 48 percent) and expand the executive suite component by another 8,000 square feet, or an additional 30 executive suites," IMC Equity President and CEO Yoram Izhak said. "Furthermore, as part of the 113,000 square feet of self-storage, about 44,000 square feet is raw space (cold dark shell), where we intend to immediately build-out an additional 350 self-storage units to a total of 910 self-storage units when completed. We expect to spend about $2 million in improvements."

Renaissance Commons was built in 2008. The sale to IMC Equity Group didn't include some individual office condos that were previously sold to third parties before the foreclosure.

Two new apartment buildings recently broke ground nearby.