A West Palm Beach campus that previously hosted a rehabilitation facility was sold for $14 million.
AREP 5400 East Avenue LLC, an affiliate of New York-based Atlas Real Estate Partners, sold the 7.47-acre property at 5400, 5402 and 5408 East Ave. to 5400 West Palm LLC, an affiliate of New York-based George Comfort & Sons, led by CEO Peter S. Duncan. Oklahoma Fidelity Bank provided a $9.9 million loan to the buyer.
The site has six buildings that total 79,830 square feet. They were previously used for offices, residences, a commercial kitchen, and meetings for a rehab operator.
The property last traded for $11.5 million in 2015. The campus was developed from 1991 through 2002. It was previously owned and operated by Comprehensive Alcoholism Rehabilitation Programs.
The site is between St. Mary’s Medical Center and a cemetery.
The buyer, George Comfort & Sons, is a 100-year-old company that invests in commercial real estate. All of the properties listed on its website are in the New York metropolitan area. Most of them are office buildings.
This West Palm Beach property could be redeveloped as medical offices within the current zoning, although that would require a site plan modification from the city. There has been growing demand for health care services in Palm Beach County, which has a large and growing senior population. Many physicians find it convenient to have their offices near hospitals.
The property is on the north side of West Palm Beach, which generally has lower income levels and hasn’t seen as much development as the city’s urban core. A job-creating project there could boost economic activity for residents.