California’s teachers’ retirement fund just sold the Coastal Tower in Fort Lauderdale for $47.5 million to Cardinal Point Management, a Tampa-based investment and property management firm.
The California State Teachers’ Retirement System sold the 571,300-square foot office building at 2400 East Commercial Boulevard to Halcar Coastal, which is tied to Cardinal Point, for about $80 per foot. The buyer financed the deal with a $41 million loan from New York Life Insurance, according to property records.
The 12-story Coastal Tower was built in 1984 on a 3.3-acre lot on the southeast corner of Commercial Boulevard and U.S. 1 in the Coral Ridge neighborhood of Fort Lauderdale. About 101,000 square feet of office space is available to lease, according to Loopnet.
Overall, South Florida’s office market is showing some signs of cooling off after years of low vacancy rates and strong demand. In Broward County, net absorption totaled negative 107,000 square feet in the second quarter of 2018, down from a positive 202,070 square feet absorbed in the second quarter of 2017, according to JLL.
Cardinal Point Management, led by Gregory Williams, has commercial and residential properties in Tampa, St. Petersburg and the Orlando area. The firm focuses on “value-add” investment opportunities, according to its website.
CalSTRS is the largest retirement fund for teachers in the United States with a portfolio of more than $220 billion. About 13 percent of the total fund’s investments is allocated in real estate.