Just a year after acquiring a Palm Beach office and retail building, Delray Beach-based Redfearn Capital is selling it for $18 million and more than doubling its investment.
That’s more than double what it paid for the property at 317 Peruvian Avenue last year, when an entity linked to Alex Redfearn and his real estate investment firm bought the site for $8.4 million.
The price for the low-rise Mediterranean Revival building works out to $2,780 per square foot.
Redfearn expected the 6,500-square-foot office and retail building to be a long-term hold. But the buyer, whose identity hasn’t been made public, made the sellers “an offer we couldn’t refuse,” Redfearn said.
The 2002 building has built-in parking, a rarity on the island. Its tenants include Sotheby’s International Realty, Pizza Al Fresco and Caroline Rafferty.
Redfearn gave the building a new coat of paint, but it’s otherwise the same as a year ago. Offices on the island are rare and in high demand, with more office space located across the bridge in West Palm Beach.
The property is valued at $6.9 million, according to the county property appraiser. It’s located about a block from Worth Avenue, the island’s ultra-luxury shopping strip.
An entity connected to Palm Beach real estate investor Paul Maddock Jr. bought the property in 1999 before selling it to Redfearn. Maddock paid $750,000 for it, according to property records.
Redfearn was part of a group that earlier this year bought a 53-building industrial portfolio valued at $628 million. The firm owns several industrial properties across Florida, including two Miami warehouses it bought for $36.7 million and co-owns with TPG Angelo Gordon.
Citadel’s Ken Griffin sold his 50,000-square-foot Worth Avenue office building earlier this year for $86 million after holding it for three years. And CS Ventures picked up 44,000 square feet of Palm Beach office and retail space for an undisclosed amount, but secured a $22 million acquisition loan from Ocean Bank for the purchase.
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