Lennox Industries, a company based in Richardson, Texas that specializes in climate control services for residential and commercial properties, has acquired an office building in Fort Lauderdale for $16 million. The 30,000-square-foot property is located at 2001 South Andrews Avenue and will serve as Lennox’s Southeast U.S. headquarters. In addition to its regional office, the company plans to establish a training center at the site.
The seller of the property is affiliated with Health Network One, which manages networks for outpatient therapy and various medical specialties. According to records, Health Network One purchased the building in 2012 for $2.2 million and completed a major renovation in 2014. The building was originally constructed in 1949 and previously functioned as a distribution center for Hughes Supply Company.
Steve Hyatt of Berger Commercial Realty represented the seller during the transaction. Christopher Dubberly and Michael Meaden from CBRE represented Lennox Industries.
“We expected the highest offer to come from a developer,” Hyatt said, adding that the property’s move-in ready condition made it appealing for an end user.
South Florida’s office market experienced significant growth during the first three years of the pandemic but has slowed recently due to higher interest rates and reduced values. Despite this shift, medical offices and buildings owned by their users have continued to see steady activity.
Earlier this year, downtown Fort Lauderdale saw two major office tower sales: Bradford Allen Investment Advisors bought Las Olas Centre I & II for $208 million at 350 and 450 East Las Olas Boulevard; meanwhile, Lone Star Funds along with Highline Real Estate Capital and Square2 Capital acquired Bank of America Plaza at Las Olas City Centre at 401 East Las Olas Boulevard for $220 million.
All-cash transactions have become more common as borrowing costs rise. For example, Spanish billionaire Amancio Ortega is under contract to purchase Miami’s Sabadell Financial Center at 1111 Brickell Avenue for $275 million (https://therealdeal.com/miami/2024/03/18/amancio-ortega-to-buy-brickells-sabadell-financial-center-for-275m/).
