A pair of vacant lots in Coral Springs, once slated to become speculative warehouses, were just sold at a loss by Prologis.
The parcels, which together total roughly 22 acres, are located at the southwestern corner of Northwest 39th Street and Northwest 120th Avenue.
Both were first purchased by Prologis, a major industrial developer in the U.S., for $14.7 million in 2007, according to Broward County records.
Christopher Metzger, an agent with brokerage Cushman & Wakefield, said Prologis had plans to develop the property with four speculative distribution warehouses with roughly 330,000 square feet of space. But those plans never came to fruition. Metzger, who marketed the property on behalf of Prologis, said the company saw its non-performing vacant land and came to the conclusion that it was better to sell.
“They decided the 22 acres was excess inventory,” he told The Real Deal.
The land has now sold for $7.41 million, according to county records. The buyer is an affiliate of J&L Biggie Management, headed by developer John Biggie. Metzger said Biggie’s plans include building small bay warehouses on the site, a product that performs well in the Coral Springs market.
As to why Prologis took a hit on the property, Metzger pointed toward the market’s condition when the company first purchased the land in 2007. At the time, prices were still at premium levels and the $15 per square foot of land Prologis paid was at market rate. With industrial vacancy rates dipping well below 4 percent, there was no question that a spec warehouse would get filled, Metzger said.
Despite the industrial market’s strong improvement, vacancy rates are still hovering around 6.8 percent and prices have yet to return to pre-crash premiums, he told TRD.
Metzger’s team, including Rick Etner, Christopher Thomson, Matthew McAllister and Julie Miller, also worked on the transaction.