Globe St. PALM BEACH-In a move to cash in on a distressed redevelopment deal, Ram has sold the SunTrust Bank outparcel at its West Boynton Professional Center for $4.4 million. Ram had acquired the 3.7-acre property by purchasing the first mortgage and subsequently securing title through foreclosure.
“We bought a bank note at a discount, which has been the heart of our business during the past two years,” Peter Cummings, chairman of Ram, tells GlobeSt.com. “We took the property through foreclosure and implemented a development plan, which involved building the SunTrust branch and the medical office building.”
Located at the intersection of Hagen Ranch Road and Boynton Beach Boulevard, West Boynton Professional Center was acquired in 2009 and development was completed in 2010. The asset includes a fully leased 12,000-square-foot medical office building. The tenants are Women’s Healthcare Associates’ obstetrics and gynecology offices, Bentin Chiropractic Wellness Center and Trillium Medical Center.
“The SunTrust has now been sold and was sold because it produced a good return on our investment. The medical office building is fully leased,” Cummings says. “We have one pad left to develop which can accommodate another 8,000 square feet of medical office. The medical office space is being leased quickly at good rents because almost no new competitive supply has been created in this market during the past several years.”
Cummings says Ram’s plans going forward are to continue to focus on creating value within the portfolio of notes the company has acquired and to place increasing emphasis on new development activities, particular in luxury rental apartments.