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Office Depot and OfficeMax’s parent company ODP is staying put at its global headquarters in Boca Raton, Fla., inking a 214,684-square-foot renewal at the 29-acre campus it sold last year.
ODP sold the site at 6600 N Military Trail for $104 million to BH Group and Pebb Enterprises, which is planning to redevelop it into a mixed-use campus.
At the time of the sale in April, the tenant had committed to a 285,000-square-foot leaseback agreement.
Under the new lease agreement, ODP will consolidate its offices — currently spread across three buildings — into one, reducing its footprint by a quarter. The lease agreement expires in 2033, according to a representative for the landlords. A representative for ODP did not immediately respond to a request for comment.
BH Group and Pebb Enterprises are gearing up to redevelop the campus, which now features a total of 650,000 square feet of office space.
The joint venture has proposed converting one office building into a 500-unit apartment building and adding a 36,700-square-foot luxury gym and 42,000 square feet of retail space. Two office buildings, totaling 407,500 square feet, would remain.
“In a changing office sector, tenants want to be in dynamic mixed-use environments,” Isaac Toledano of BH Group said in a statement. “We are poised to create a true town center for the area and bring Boca Raton new high-quality residences.”
Last month, Boca Raton officials granted initial approval for the redevelopment project. The owners expect to complete the city’s site plan approval process in the fourth quarter of 2024.
Julia Echikson can be reached at jechikson@commercialobserver.com.
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