South Florida’s five biggest industrial market sales of 2016
An industrial market boom swept through South Florida in 2016.
Demand was strong for warehouse properties from Miami-Dade County through Palm Beach County, with buyers like Blackstone Group, Invesco Advisors, Clarion Partners and J.P.Morgan Asset Management getting into the fray.
Here are the top five sales in the tri-county region, priced from nearly $250 million to $50 million, based on CoStar Group data.
#1. Flagler Station I, II, III, 10801 Northwest 103rd Street, Medley
In the biggest industrial deal of the year, Blackstone Group acquired a 50 percent stake in Flagler Station I, II and III for $248.5 million in September. The previous 100 percent owner was AEW Capital Management. The 33-building park totals 5 million square feet.
AEW, headquartered in Boston, paid $340 million for the complex at 10801 Northwest 103rd Street in Medley in April 2012. The seller in that transaction was the developer, Flagler. Flagler opened the complex in 2001, and long-term tenants include FedEx and Ryder System.
#2. South Florida Logistics Center, 3200 Northwest 67th Avenue, Miami
Marking the second largest sale, Florida East Coast Industries sold South Florida Logistics Center, a 200-acre industrial development near Miami International Airport, for $209 million in September.
FECI and its subsidiary Flagler Global Logistics sold the property to an entity of J.P. Morgan Asset Management, which manages pension funds.
The site includes five industrial buildings with a total of 867,343 square feet. The buildings, including one that Amazon.com leases, were completed in 2013. They range in size from 112,562 square feet to 274,844 square feet. In addition to Amazon, tenants include Flying Food Group, Goodyear and Seafrigo.
#3. Seven buildings in Miami Lakes, Doral and Hollywood
In February, Invesco Advisers paid $98 million to the Easton Group for the majority interest of a substantial South Florida industrial portfolio.
The sale included more than 675,000 square feet of industrial space spread throughout seven buildings, together totaling about 54 acres of land. Six of the buildings are in Miami-Dade County and one is in Broward County. The sale broke down to $145 per square foot.
The Easton Group will remain the properties’ manager and a minority owner with a 10 percent interest under the new joint-venture. Easton Group’s in-house brokerage Easton & Associates represented the firm for this deal, and Invesco was also self-represented.
The properties included :
- 1600 Northwest 59th Avenue, Miami Lakes
- 16250 Northwest 59th Avenue, Miami Lakes
- 5800 Northwest 163rd Street, Miami Lakes
- 5890 Northwest 163rd Street, Miami Lakes
- 2200 Northwest 84th Avenue, Doral
- 2330 Northwest 82nd Avenue, Doral
- 2600 Southwest 39th Street, Hollywood
#4. Pompano Industrial Center, 2001-2009 Northwest 25th Avenue, Pompano Beach
Invesco Advisers sold an assemblage of industrial buildings in Pompano Beach for $77.25 million in May to New York-based investment manager Clarion Partners.
An affiliate of Invesco Advisers, an investment manager headquartered in Texas, sold the four buildings at 2004, 2001 and 1901 Northwest 25th Avenue, as well as 2510 West Copans Road. All four were built between 1999 and 2001, and they house about 565,144 square feet of space altogether. The deal equated to nearly $136 per square foot.
#5. Industrial parks in West Palm Beach, Riviera Beach, Magnonia Park and Lake Park
In November, 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. 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.
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.
TRD researcher Eda Kouch contributed to this report.