Significant market sale underscores high demand for distressed and medical office assets as inventory remains low

Lake Worth, Fla. – Avison Young’s Florida Capital Markets Group closed the $5.55 million distressed asset sale of the JFK Medical Building, a four-story, multi-tenant medical office building totaling 35,078 rentable square feet. Situated in one of the two primary office nodes of Palm Beach County’s Palm Springs/Lake Worth submarket, the property is located at 4801 South Congress Ave in Lake Worth, Florida. The asset was sold on the Ten-X online auction platform.

Avison Young Principals John K. Crotty, CCIM; David Duckworth; Michael T. Fay, who is also Managing Director of the firm’s Miami office; Vice President Brian de la Fé; and Associate Berkley Bloodworth completed the sale of the foreclosure property on behalf of the owner, JPMCC 2006-LDP7 OFFICE 4801, LLC. BD 4801, LLC was the buyer.

“As REO [real estate owned] distressed asset inventory remains low, the 30-percent-occupied JFK Medical Building represented a significant investment opportunity at a considerable discount to replacement cost,” said Crotty. “The asset’s recent renovations, coupled with it’s proximity to the JFK Medical Center, will provide the buyer with tremendous upside from lease-up opportunities.”

Conveniently located within a half-mile of the main campus of the JFK Medical Center, a 486-bed medical and surgical facility and HCA East Florida-affiliated hospital, JFK Medical Building boasts excellent frontage, access, and visibility on Congress Avenue, and is just one mile west of Interstate 95. Over the past two years, ownership invested over $500,000 in major capital expenditure work including, new elevator cabs, a new common-area HVAC system, new flooring in the lobby, a resealed parking lot, new exterior landscaping, refaced monument signage, and a partial ceiling tile replacement.

Leasing activity has been strong in Palm Beach County to date in 2021, with strong in-migration coming from the Northeast contributing to the market’s economic growth. As a result, average base rents continue to climb and are among the highest in the country, according to Avison Young’s second-quarter 2021 office market report.