A 10-story West Palm Beach office building and an adjoining lot sold for $35.88 million as the city’s office market continues to attract more tenants.
Clear E LLC and Clear T LLC, both managed by Herbert F. Kahlert in West Palm Beach, sold the 104,713-square-foot office building and the 650-space parking garage at 500 S. Australian Ave., along with the 0.62-acre parking lot at 500 Clearwater Park Road. The buyer was CS Ventures Management LLC, managed by Spencer J. Schlager, of Palm Beach-based CS Ventures, and Charles L. Rosenberg, of New York-based Rosemark Property Holdings. Northern Trust Co. provided a $20 million mortgage to the buyer.
Josh Wade of Flagship Partners brokered the off-market deal. He said the office building is about 90% occupied, with tenants including Centennial Bank, the U.S. General Services Administration, law firm Goldberg Segalla, and civil engineering firm Chen Moore and Associates.
The property last traded for $12.8 million in 2001, so it more than tripled in value in two decades. That’s a reflection of the strong demand for office space in West Palm Beach, which has lured many financial companies from high-tax markets in recent years.
The office was built on the 1.38-acre site in 1985. It’s located just west of downtown, about a block north of Okeechobee Boulevard, and it has lake views to the west.
Space at 500 S. Australian Ave. was recently listed for lease online at $24 a square foot.
This isn’t Schlager’s first foray into the Palm Beach County office market. One of his companies purchased three office buildings on Banker’s Row in Palm Beach in 2021.
