West Palm Beach Office Tower Sells for $45M, Reflecting Market Adjustment

Bradford Allen Acquires Prominent West Palm Beach Tower at Market-Adjusted Price

In a transaction highlighting evolving commercial real estate valuations, Chicago-based Bradford Allen Investment Advisors has acquired the One Clearlake office tower in West Palm Beach for $45 million. The purchase price reflects a significant 26% discount from the property's previous sale just four years ago, according to property records and real estate database Vizzda.

The 18-story building at 250 South Australian Avenue was sold by Boston-based Rockpoint Group and its investment partners, who had purchased the property for $60.7 million in 2021. The transaction was facilitated by CBRE, with Chris Lee and Sean Kelly representing the seller in the negotiations.

Built in 1987, the approximately 222,000-square-foot tower sits on a 2.9-acre site and features an attached four-story parking structure with 669 spaces. Currently, the building maintains approximately 63% occupancy with notable tenants including Truist Bank, Ideal Nutrition, employment specialist Robert Half, and Rubenstein Law Personal Injury Lawyers.

Ambitious Renovation Plans Set to Revitalize the Property

Bradford Allen isn't simply acquiring the property—they're committing to its transformation. The investment firm has announced plans for a comprehensive $10 million renovation program designed to modernize key building elements and enhance tenant amenities.

"One Clearlake represents an excellent opportunity to acquire a well-positioned asset with significant upside potential through targeted capital improvements," said Jeffrey A. Bernstein, co-founder of Bradford Allen Investment Advisors. "Our renovation strategy focuses on creating environments that meet the evolving demands of today's office tenants."

The renovation will include upgrades to:

• Roof infrastructure

• Elevator systems

• Conference center facilities

• Fitness center

• Tenant lounge areas

• Food service amenities

Additionally, the firm plans to develop four speculative suites on one floor, expected to be completed by the fourth quarter of 2025. These move-in ready spaces will cater to tenants seeking turnkey office solutions—a strategic response to changing tenant preferences in the post-pandemic office environment.

Expanding South Florida Footprint

The One Clearlake acquisition marks Bradford Allen's second major investment in South Florida's commercial real estate market. In February 2025, the firm purchased Las Olas Centre I & II in downtown Fort Lauderdale for $208 million. These twin buildings at 350 and 450 East Las Olas Boulevard represent premium office space in one of South Florida's most desirable business districts.

Led by co-founders Jeffrey A. Bernstein and Laurence B. Elbaum, Bradford Allen appears to be implementing a strategic expansion into South Florida's commercial real estate landscape, targeting properties with value-add potential in established business hubs.

South Florida Office Market: A Tale of Adjustment

The One Clearlake transaction reflects broader trends reshaping South Florida's commercial real estate market. Following an unprecedented boom period from late 2020 through 2022—fueled by an influx of out-of-state companies relocating to Florida—the market has experienced a notable adjustment over the past two years.

Several factors have contributed to this market recalibration:

• Elevated interest rates affecting financing costs

• Skyrocketing insurance premiums, particularly in Florida

• Slowing pace of new-to-market firms establishing presence

• Shifting work patterns affecting office space demand

The One Clearlake transaction is not isolated in representing this market adjustment. Several notable office properties have sold at discounts in the past year, including:

• C-III Capital Partners acquired the two-building One Park Square at Doral campus for $71 million in September 2024, representing a 26% discount from its 2017 purchase price

• Starwood Capital Group sold a four-building office portfolio in Miramar for $45 million in 2024, marking a 45% discount from its 2015 acquisition cost

• Accesso Partners purchased the six-story Sawgrass Lake Center for $36.5 million in January 2025, a 36.4% discount from the property's 2018 sale price

Downtown West Palm Beach: A Resilient Submarket

While many South Florida office submarkets have experienced significant price adjustments, downtown West Palm Beach and surrounding areas have demonstrated remarkable resilience. The area continues to attract premium investment, most notably from billionaire developer Steve Ross through his Related Ross entity.

Ross has established a significant presence in downtown West Palm Beach, with a portfolio encompassing nine office buildings in various stages—completed, purchased, under construction, and planned. This continued investment by high-profile developers suggests enduring confidence in the long-term prospects of West Palm Beach's commercial real estate market.

The One Clearlake transaction, while reflecting market adjustments, also indicates continued investor interest in well-located assets with value-add potential in this resilient submarket.

Market Insights: Understanding the South Florida Office Landscape

Is the South Florida office market in distress?

The market is experiencing a recalibration rather than distress. While certain properties have sold at discounts, well-positioned assets in prime locations continue to attract investment. The adjustments reflect a normalization following the exceptional growth period of 2020-2022 and the impact of broader economic factors including interest rates and insurance costs.

What makes downtown West Palm Beach different from other South Florida submarkets?

Downtown West Palm Beach has cultivated a unique position as a premium office destination with strong appeal to financial services firms and wealthy individuals relocating from higher-tax states. The area benefits from proximity to Palm Beach's affluent population, walkable urban amenities, and continued investment by major developers like Related Ross.

Are office renovation investments still viable in the current market?

Strategic renovations targeting tenant experience and modern amenities remain sound investments. Buildings like One Clearlake that receive targeted capital improvements addressing post-pandemic tenant preferences for health, wellness, and collaboration spaces are well-positioned to outperform the broader market.

How are investors adjusting their strategies in response to market conditions?

Sophisticated investors like Bradford Allen are focusing on value-add opportunities, acquiring well-located assets at adjusted valuations and implementing targeted improvements. This approach combines opportunistic acquisition with strategic repositioning to meet evolving tenant demands and capitalize on long-term market fundamentals.

What long-term trends will shape South Florida's office market recovery?

The market's future trajectory will likely be influenced by continued population growth in Florida, corporate tax advantages, lifestyle appeal, and the evolution of hybrid work models. Properties that successfully adapt to changing workplace preferences while maintaining prime locations will be best positioned for long-term appreciation as the market stabilizes.