The Real Deal Miami

Harbor Group buys Power Systems Manufacturing HQ in Jupiter

The 190K sf warehouse was built in 1968
By Amanda Rabines | December 20, 2018 01:30PM

1440 West Indiantown Road and Harbor Group’s Jordan E. Slone

Harbor Group International just paid $40.8 million for the headquarters of Power Systems Manufacturing in Jupiter, property records show.

Florida Land Fund III LLC, which is tied to FLF Holdings, sold the 189,350-square-foot building at 1440 West Indiantown Road. The trade equates to about $215 per square foot.

Records show FLF Holdings purchased a majority of the property in 2007 for $16.5 million. Last year, it paid an additional $3.5 million for the remaining 22.5 percent interest.

Harbor Group now owns the property through four separate affiliates. Jupiter Industrial LLC owns a majority interest amounting to 67.75 percent. GRC Jupiter Industrial LLC owns a 19.38 percent interest; BPA Jupiter Industrial LLC, a 9.06 percent interest; and 4188 Jupiter Industrial LLC, a 5.16 percent interest, records show.

Harbor Group financed the deal with a $27.25 million loan from JPMorgan Chase Bank, records show. The warehouse was built in 1968 and consists of a mix of flex and office space.

Power Systems Manufacturing was founded in 1998 and purchased by Alstom, a French multinational rail transportation company, in 2007. Two years later, PSM expanded its headquarters in Jupiter by 76,000 square feet to add a facility for gas turbine repairs. The company supplies parts to power generation businesses across the globe, according to its website.

FLF Holdings, led by Josh Simon and Michael Norman of Schaumburg, Illinois-based Crossroads Partners, has been active in Palm Beach County.

The company recently bought a strip mall next to Palm Beach International Airport for $8.6 million.

Norman and Simon have also teamed together to build a business park in Jupiter. The partners paid $11 million for the 59-acre site in 2016. It sits just east of I-95, along Indiantown Road and on both sides of Island Way.

Harbor Group is headquartered in Norfolk, Virginia with offices in New York, Baltimore, Los Angeles and Tel Aviv. The private real estate investment and management firm controls a portfolio valued at $8.2 billion, according to its website.