A joint venture led by Butters Construction & Development just bought a 22.35-acre development site in Tamarac for $15 million with plans to develop two industrial properties.
The seller, Advance Business Associates, is led by City Furniture CEO Keith Koenig. The vacant land sits just north of the furniture retailer’s 840,380-square-foot headquarters at 6701 Hiatus Road, east of Sawgrass Expressway.
Records show the joint venture, Tamarac Industrial Venture LLC, scored a $26 million construction loan from BB&T. Butters partnered with an institutional capital partner to acquire the land to build two warehouse and distribution facilities, according to a press release.
Cushman & Wakefield’s Chris Metzger, Richard F. Etner Jr., Christopher Thomson and Matthew G. McAllister represented the seller.
City Furniture is a privately owned retailer that was founded in 1971 by Keith Koenig’s brother, Kevin Koenig. It sells home furnishings, mattresses, and home accents.
Butters Construction is an investor, developer and contractor that mainly operates in South Florida. In 2016 it sold a Boca Raton development site where Geo Group, a for-profit operator of prisons, built its corporate headquarters.
The latest industrial development adds to a growing list of developments in the pipeline for Broward, as land availability continues to shrink and rents continue to rise. According a third quarter Cushman & Wakefield report, Broward’s industrial vacancy rate hit an all-time low of 3.1 percent.