The Real Deal Miami

Boston investors pay nearly $16M for Royal Palm warehouse

Investment firm has spent $6.3B on industrial RE since its inception in 1986

January 11, 2016 04:30PM
By Sean Stewart-Muniz

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The warehouse at 601 North 103rd Avenue in Royal Palm Beach

The warehouse at 601 North 103rd Avenue in Royal Palm Beach

Cabot Properties just gained some traction in Royal Palm Beach with this purchase: the private equity firm dropped nearly $16 million on a warehouse leased out to the country’s largest tire distributor.

The 124,420-square-foot warehouse was built three years ago on a 6.5-acre site at 601 North 103rd Avenue. It’s owned by the Exeter Property Group, an investment management company based in Pennsylvania that specializes in developing and managing industrial properties.

Exeter leased out its newly built commercial site to American Tire Distributors, which has its headquarters in North Carolina. This is the tire distributor’s eighth shipping center in Florida, and its 113th nationwide.

Now, through a deed signed last week, Exeter offloaded its warehouse for $15.75 million — or about $126 per square foot.

The buyer is Cabot Properties, a Boston private equity firm that invests in real estate. Much like Exeter, the firm’s focus is industrial properties. It kicked off activity in 1986 and has since spent $6.3 billion on commercial deals. South Florida is one of the firm’s 23 target markets within the U.S., though it also takes interest in the United Kingdom and Netherlands.

Exeter also owns the neighboring 152,000-square-foot warehouse at 700 North 103rd Avenue, which is also leased out to a major distribution company.