The owners of the Buddha Sky Bar building on Delray Beach’s Atlantic Avenue are looking to cash in on the area’s hot commercial market by putting the property up for sale.
The three-story, 11,500-square-foot building at 217 East Atlantic Avenue is on the market for $24.5 million, which breaks down to about $2,130 a foot, according to CoStar. SkyBar Holdings LLC, a company led by Chris Licata and Vladislav Yampolsky, owns the property.
The property’s cap rate is in line with the market, Marcus & Millichap vice president of investments and listing broker Marc Strauss told The Real Deal. The sky bar building is listed at a 4.08 percent cap rate, according to CoStar.
Nearby, the building at 326 and 400 East Atlantic Boulevard sold for a 3.4 percent cap rate for a total purchase price of $19.5 million in April 2015, Strauss said. More recently in June 2016, the Urban Outfitters-leased building at 306 East Atlantic Boulevard sold for a 3.43 percent cap rate in an $8.3 million deal to Menin Development. That purchase broke down to about $750 per square foot.
SkyBar Holdings paid $2 million for the 8,068-square-foot piece of land in 2006 and completed the building in 2009. The owners, who also operate the Buddha Garden restaurant on the first floor, the Level nightclub on the second floor and the sky bar restaurant on the third floor, are looking to lease the ground floor for one year and the second and third floors from a new owner for 10 years.
As to why the ownership is looking to sell, Strauss said that “they’ve invested so much money in the building over time and it’s the right time in the market.” Each floor is about 3,300 square feet with an 1,500-square-foot additional mezzanine on the ground floor. The building’s height gives it “commanding views of the avenue all the way to the ocean,” Strauss told TRD.