DiVosta family sells Palm Beach Gardens office towers for $80M

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September 29, 2020
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As reported in The Real Deal.

Investors Nader Shalom and Babak Ebrahimzadeh paid $80 million for the DiVosta Towers in Palm Beach Gardens, marking one of the biggest office sales to close in recent months.

The DiVosta family sold the two 11-story Class A Towers at 3825 to 3835 PGA Boulevard to Gatsby Enterprises and Master Mind, according to a press release.

The two buildings, completed in 2019 and last month, are the first new office buildings to be delivered in Palm Beach Gardens in about a decade.

Shalom, also known as Nader Ohebshalom, leads Gatsby Enterprises. His family has been involved in Manhattan real estate for about 50 years, and his brother is Fred Ohebshalom, CEO and founder of Empire Management. Ebrahimzadeh leads Master Mind.

Otto “Buz” DiVosta, a longtime South Florida homebuilder, bought the 7-acre construction site in 2015 for $8.5 million.

The south tower features built-out spec suites ranging from 2,500 to 10,000 square feet, and the north tower has 10,000-square-foot floor plates available, according to the release.

Annual offices rents are $38 and $39 per square foot, according to an online listing.

Last year, Gatsby Enterprises and Master Mind bought 800 Brickell for $125.5 million. It was one of the largest office deals of the year.

The sale of the DiVosta Towers comes as the rise of remote work puts cash flows for U.S. office real estate investment trusts at risk in the near and long term. The pandemic has drastically changed the way CEOs around the globe see the future of work. In one recent survey, more than two-thirds said they may reduce their office footprint in the coming years.

Few office buildings have sold since the pandemic started. In September, Banyan Street Capital paid a discounted $43 million for a Doral office complex.