Lennox Industries, a Texas-based climate control services company, has acquired an office building in Fort Lauderdale for $16 million. The company plans to use the 30,000-square-foot property at 2001 South Andrews Avenue as its Southeast U.S. headquarters and will also open a training center at the site.
Lennox is led by CEO Alok Maskara. The seller of the building is affiliated with Health Network One, which manages outpatient therapy, vision care, dermatology, and podiatry networks.
The sale was facilitated by Steve Hyatt of Berger Commercial Realty for the seller, while Christopher Dubberly and Michael Meaden from CBRE represented Lennox in the transaction.
Health Network One originally purchased the property for $2.2 million in 2012 and renovated it extensively in 2014. Previously, the one-story building had served as a distribution center for Hughes Supply Company.
“We expected the highest offer to come from a developer,” Hyatt said. He noted that “the property’s move-in ready condition made it appealing for an end user.”
South Florida’s office market experienced strong activity during the first three years of the pandemic but has since slowed due to higher interest rates and lower values. However, medical offices and user-owned buildings have continued to see transactions despite these broader market conditions.
Despite this cooling trend, downtown Fort Lauderdale saw two major office tower sales in the first quarter: Bradford Allen Investment Advisors acquired Las Olas Centre I & II for $208 million at 350 and 450 East Las Olas Boulevard; Lone Star Funds—alongside Highline Real Estate Capital and Square2 Capital—purchased Bank of America Plaza at Las Olas City Centre at 401 East Las Olas Boulevard for $220 million.
Amid higher interest rates, all-cash deals have become more common. Spanish billionaire Amancio Ortega is reportedly under contract to purchase Miami’s Sabadell Financial Center at 1111 Brickell Avenue for $275 million.
