777 American Express Way (Melanie Bell)
A Miami-based real estate investment and advisory firm paid $33.5 million to acquire the American Express Co. office complex in Plantation—less than half what the seller, Kan Am Plantation Express LP, paid in 2007.
Plantation 25 LLC, linked to the developer and investor TM Cos., purchased the 650,211-square-foot office building in a deal that closed Thursday.
“Plantation is a fantastic office market in central Broward. That’s why we bought it,” said Matthew Pellar, CEO of the TM Cos. “We liked the flexibility of the property, and you can’t get a better location.”
The corporate complex is a standout in Plantation’s suburban office market, known for its generous parcels and parking ratios. Built on nearly 25 acres, it offers seven spots per 100 square feet.
It is the latest acquisition for TM, which has been purchasing income-producing multifamily assets and other real estate it could reposition for higher returns. The firm also has been taking on development projects both as the principal and as an operating partner, according to its marketing material. The TM Cos. has acquired more than 1,600 multifamily and fractured condo units in the last three years, with more than 340 units in the pipeline and a goal to diversify its real estate portfolio.
But TM’s new office holding could soon lose its biggest income stream when anchor tenant American Express relocates to Sunrise.
The credit card company confirmed rumors last year that it would consolidate its Broward County operations in a 400,000-square-foot regional headquarters on a 40-acre site. The goal is to move American Express’ Weston, Plantation and Miramar operations and 3,000 employees to Sunrise.
The 375,000-square-foot American Express lease expires in 2019, but the company has the option to terminate in 2017.
CBRE Inc. arranged financing but did not disclose the terms. The price was about 54 percent below the $73 million commanded when the building last sold Nov. 28, 2007.
Kan Am is part of Germany’s KanAm Group, which owned three U.S. Amex properties at one time.