A GEO Group subsidiary acquired a vacant site in Boca Raton for $9.9 million and plans to build its headquarters there.
The prison and corrections facility owner and operator (NYSE: GEO) currently has its headquarters a few blocks away from the site it purchased at 4955 Technology Way. Its acquisition includes 1.1 acres of land and permission to park on the surrounding site that’s shared with another office building.
GEO Group spokesman Pablo Paez said the acquired land is intended for the future development of the company’s headquarters office. He said construction would most likely start some time in 2017. The site can accommodate about 105,000 square feet of office, Paez said.
According to GEO Group’s annual report, its lease runs until March 2020.
The property was sold by BV Land LLC, managed by Malcolm Butters of Coconut Creek-based Butters Construction and Development and Leon Wildstein. It last traded for $2.1 million in 2010.
In 2015, they proposed building a 125-room Hyatt House hotel on the site. Butters said they changed their mind when GEO Group made them a strong offer.
“It made more sense to sell the land than take the economic risk of developing a hotel,” Butters said. “It was a ready-to-go site. Plans for a Phase Two building come with the land. It has an amenity base with Tri-Rail and the shops and LA Fitness right there.”
Given that GEO Group is a public company and it could probably borrow money at 3 or 4 percent interest, constructing a building would be less expensive than renting, Butters said.
The broker on the deal was Jay Whelchel.
Meanwhile, Butters said he is actively scouting locations in Boca Raton for a new Hyatt House. He has some more cash in the bank to help with that search.