Fred Keller trust sells Palm Beach industrial portfolio to Silverman Group for $50M

Map of properties. Inset: Cushman & Wakefield's Scott O'Donnell and Greg Miller
Map of properties. Inset: Cushman & Wakefield's Scott O'Donnell and Greg Miller

The estate of Fred Keller sold a portfolio of industrial properties in northern Palm Beach County to affiliates of Iselin, New Jersey-based Silverman Group for $50 million.

A trust in Keller’s name sold the 38 buildings, public records show. Keller was a millionaire Palm Beach real estate tycoon who died in prison while serving a life sentence for killing his fifth wife, according to the Palm Beach Post. 

The nearly 916,000-square-foot portfolio, spread across 16 sites and nearly 54 acres in West Palm Beach, Riviera Beach, Magnonia Park and Lake Park, breaks down to $55 per square foot, Cushman & Wakefield announced on Wednesday.

The properties were developed between 1971 and 2003. The warehouses are fully leased to 218 tenants averaging 4,200 square feet.

Cushman’s Scott O’Donnell, executive director; senior associate Greg Miller; director Dominic Montazemi and executive director Mike Davis represented the buyer. The brokerage’s capital markets team co-marketed the portfolio with CBRE Executive Vice President Robert Smith. Miguel Alcivar and debt financing partner Jason Hochman, both of Cushman, also worked on the deal, according to a release.

Sign Up for the undefined Newsletter

Overall vacancy rates in Palm Beach County stand at 3.8 percent and at 3.3 percent in the warehouse and distribution sector, the brokerage said in the release. Vacancies hit a nine-year low earlier this year, pushing rents upward of $7.78 per square foot, triple net in the county’s industrial market. O’Donnell cited increasing land values and construction costs as limiting supply.

In June, a self storage real estate investment trust paid more than $180 million for a portfolio of 10 properties in South Florida and one in Baltimore, Maryland. Earlier this year, Easton Group sold the majority interest of its industrial portfolio in Miami-Dade and Broward counties for $98 million, a deal that broke down to nearly 54 acres, $145 per square foot and 675,000 square feet of industrial space in seven buildings. – Katherine Kallergis

Here’s a breakdown of Silverman’s purchase:

Industrial properties

 

Recommended For You