South Florida’s Largest Office Deal of the Year: Pebb Enterprises and BH Group Acquire Office Depot Campus for $104 Million

Pebb Enterprises and BH Group have made a massive investment in the South Florida real estate market. The joint venture has acquired the national retailer Office Depot’s headquarters for $104 million, marking the first office deal to exceed $100 million in South Florida this year. The off-market transaction involved Pebb and BH obtaining a $63 million loan, which was arranged by Scott Wadler and Mike Basinski with Berkadia.

Located at 6600 North Military Trail in Boca Raton, the Office Depot campus sits on a nearly 29-acre site that overlooks the Broken Sound Country Club’s golf course in the Park at Broken Sound. The 651,265-square-foot complex was completed in 2008 and has been Office Depot’s main tenant since then. The company has expanded into providing copying services and technology support to small businesses in recent years.

Office Depot purchased the property in 2017 for $132 million, and in 2020, obtained a $118 million refinancing on the property from JPMorgan Chase Bank. However, the company sold its home base to Pebb Enterprises and BH Group for $28 million below its purchase price six years ago.

Despite flat sales of $8.5 billion last year compared to 2021, Office Depot ended 2022 with a net income of $216 million, according to its March earnings report. The complex’s new owners plan to implement “a substantial capital improvements program to upgrade the Office Depot campus,” according to a statement from the joint venture.

Toledano added that Office Depot would remain as the primary tenant, currently occupying roughly 300,000 square feet of the campus. However, the joint venture will be seeking new tenants to lease the remaining available space. Joe Freitas and John Criddle with CBRE will handle leasing for the complex.

Pebb Enterprises is a Boca Raton-based real estate development and investment firm led by CEO Ian Weiner. BH Group is an Aventura-based real estate investment firm led by principal Isaac Toledano and his wife, Liat Toledano. In February, Pebb and BH teamed up with Chicago-based The John Buck Company and Miami-based Florida Value Partners to acquire a downtown Miami mixed-use development site for $39.5 million.

This week, BH Group also teamed up with the Related Group to purchase an office building in Plantation on 13 acres that could be redeveloped into a mixed-use project with apartments, office, and retail space. The joint venture paid $13 million for the property.

The acquisition of the Office Depot campus by Pebb Enterprises and BH Group marks a significant investment in South Florida’s real estate market. With plans for a substantial capital improvements program to upgrade the campus, the joint venture is set to enhance the property’s value and attract new tenants to the region.