Fortress pays $66M for SuperValu distribution center in Pompano Beach

Trade is part of a $483M national portfolio deal

SuperValu and Peter Briger of Fortress Investment Group (Credit: SuperValu and cnas.org)
SuperValu and Peter Briger of Fortress Investment Group (Credit: SuperValu and cnas.org)

Fortress Investment Group just bought a SuperValu distribution center in Pompano Beach, as part of a $483 million national portfolio deal.

CF Grocery Distribution PropCo., an affiliate of Fortress, paid $66.4 million for a 769,000-square-foot SuperValu facility at 1141 Southwest 12th Avenue. Records show the deal was financed with a $68.41 million mortgage from Royal Bank of Canada.

The seller, Associated Grocers of Florida, was acquired by Supervalu for $180 million in October. Records show the facility last traded for $51 million in 2006. It sits on the 51.5-acre site just west of North Andrews Avenue and north West Mcnab Road. It was built in 1973.

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In April, the grocery distribution company announced it would be selling eight of its facilities, including the one in Pompano Beach. Other locations include Green Bay, Wisconsin; Harrisburg, Pennsylvania; Commerce and Stockton, California; and Champaign, Oglesby and Joliet, Illinois. The Commerce, California facility traded for $121 million.

In total, the portfolio spans about 5.8 million square feet. The trade is part of a 20-year sale leaseback agreement with SuperValu, with a five-year renewal option. Rent is expected to total about $31 million in the first year of the leases, according to SuperValu’s website.

Also in Pompano, Bridge Development Partners is building Bridge Point Powerline Road, a 468,000-square-foot speculative industrial park at 1951 North Powerline Road. Earlier this month, the 37-acre Festival Flea Market at 2900 West Sample Road traded hands for $25 million.

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