Los Angeles real estate fund buys downtown Delray Beach building for $18M

An affiliate of the Canyon Real Estate Partners acquired a building on downtown Delray Beach’s hot Atlantic Avenue for $18.01 million.

The Los Angeles-based company has invested billions of dollars in urban areas across the country. Now add downtown Delray Beach to that list.

SunTrust Bank (NYSE: STI) sold its ground lease for the 13,902-square-foot building on 0.61 acres at 302 E. Atlantic Ave. to Pierre Delray One LLC, an affiliate of Canyon-Johnson. The price equated to $1,295 a square foot for the building, or $678 per square foot for the land.

SunTrust is the main tenant in the two-story building, which was built in 1929. The deal also included the parking lot between Southeast Third Avenue and the FEC Railway.

SunTrust Bank’s predecessor signed a ground lease on a small portion of the parking lot in 1963. The current landlord is Metropolitan at Delray LLC. This building is just north of where the Morton Group plans to build the Metropolitan condominium.

Atlantic Avenue has become one of the most popular spots in South Florida for dining, entertainment and shopping. If this building is converted to retail or restaurants, it could command a higher rent.

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