Hillsboro Center: Value-Add Acquisition

600-700 W Hillsboro Blvd, Deerfield Beach, FL

The Great Recession precipitated peak historical office vacancies in Broward County. As a result, Parkway REIT engaged the local expertise of Commercial Florida in 2009 for their agency leasing services at Hillsboro Center, a 216,114 sf office portfolio. Commercial Florida implemented an aggressive marketing plan that accelerated leasing activity, escalated occupancy rates, and continued to deliver exceptional results for the premier Deerfield Beach office portfolio.


Commercial Florida successfully executed on an aggressive lease-up strategy to correct the asset’s underperformance, despite the market conditions. Hillsboro Center’s transition to stabilization compelled Parkway to sell the portfolio in 2015, while including Commercial Florida on the disposition team for their local market leasing expertise. Commercial Florida Hillsboro, LLC, facilitated a joint venture with TriGate Capital, acquired the portfolio for $22 million in 2015.


Commercial Florida Realty Partners:

  • Maintained a consistent, below-market vacancy rate throughout the hold period by negotiating numerous new leases, expansions of current tenants, and strategic relocations to optimize the portfolio’s value.
  •  Hosted SFOBA luncheon to generate exposure for remaining availability at Hillsboro Center.
  • Grew rental rates by 16% and 30% in the Class A and B properties, respectively.
  • Commercial Florida Management Services oversaw $2.7 million in capital improvements including restroom upgrades, access entryway improvements, spec suites, parking lot resurfacing, lobby and common area renovations, landscaping & site improvements, exterior painting, lighting upgrades, and more.
  • As the operating partner, Commercial Florida executed on the agreed upon Business Plan and generated a 48%, $10.5 million increase in the property’s value over the hold period and returned a 27.51% deal-level IRR to the partnership upon the exit in Q1, 2019.

Commercial Florida retained agency leasing of the portfolio upon the sale to Grover and Corlew.