PEBB Enterprises and Butters Acquire Boca Raton Office Buildings for $26.15M in First Joint Venture

PEBB Enterprises and Butters Construction & Development, Inc. have completed a $26.15 million acquisition of two multi-tenant office buildings in Boca Raton, Florida, the firms announced. The transaction marks the first partnership between the two Boca Raton-based commercial real estate companies.

Acquisition Details

The two office buildings total 59,667 square feet and are situated in one of Boca Raton's busiest business corridors, according to the announcement. At the time of closing, the properties were 75% occupied. The partnership intends to address vacancy through a targeted capital improvement program and an aggressive leasing strategy aimed at capturing mark-to-market opportunities.

Abanca provided acquisition financing for the transaction. The deal was brokered by Douglas Mandel of Marcus & Millichap's Institutional Property Advisors division, along with Zach Levine and Cody Hershey, who represented the seller, BOA 520 LLC. Christopher Staller of Nelson Mullins Riley & Scarborough LLP represented the buyers.

Value-Add Strategy and Repositioning Plans

Butters and PEBB plan to reposition the assets through strategic upgrades designed to attract new tenants and improve the overall tenant experience. The partnership intends to leverage both firms' local expertise and operational capabilities to maximize asset value.

"Partnering with PEBB on this acquisition represents a natural alignment between two firms that share a long-term vision for Boca Raton," said Malcolm Butters, President and Co-Founder of Butters Construction & Development, Inc. "This is a well-located asset with strong fundamentals and compelling upside. We see a clear opportunity to enhance the property and capture demand from tenants seeking high-quality office space in this market."

"This is exactly the type of opportunity we are focused on — well-located assets where we can apply a disciplined capital program and leasing strategy to create value," said Eric Hochman, Chief Investment Officer of PEBB Enterprises. "Boca Raton continues to show strong demand fundamentals, and we see a clear path to improving both tenancy and overall performance at the property."

PEBB Enterprises and the Boca Raton Office Market

PEBB Enterprises is a commercial real estate investment and development firm based in Boca Raton. Over the past decade, the firm has completed more than 5 million square feet of transactions representing more than $3 billion in value. The firm focuses on acquiring, repositioning, and developing assets throughout Boca Raton and the broader South Florida market.

"This acquisition shows our continued conviction in Boca Raton as a premier office market," said Ian Weiner, CEO of PEBB Enterprises. "With strong demographics, limited new supply and increased leasing activity, we believe this property is well-positioned for long-term growth. We are excited to partner with Butters on our first transaction together and unlock the full potential of this asset."

Butters Construction & Development Background

Butters Construction & Development brings a 36-year operating history to the partnership, having built more than 28 million square feet of commercial real estate valued at over $5 billion. The firm has developed office, industrial, and mixed-use projects throughout South Florida and beyond.