A company tied to First Industrial Realty Trust bought two industrial properties in Pompano Beach for $19.8 million amid an influx of institutional investment in the city.
The Chicago-based real estate investment trust bought the two buildings on a combined 18-acre site at 1021 Northwest 12th Terrace and 1001 Northwest 12th Terrace, records show. Scozak Realty Trust led by Scott Daiagi in Hollywood, Florida sold the properties.
The property at 1001 Northwest 12th Terrace includes a 18,332-square-foot building built in 1972. The property at 1021 Northwest 12th Terrace has a 13,135-square-foot building built in 2008.
Scozak initially bought the building at 1001 Northwest 12th Terrace for $1 million for 2011, records show. The company bought the site at 1021 Northwest 12th Terrace for $631,500 in 2003.
First Industrial Realty Trust is an owner, operator, and developer of industrial real estate. Its portfolio includes 476 properties with 67.9 million square feet of space, according to its website.
Institutional investors have flocked to Pompano Beach to buy industrial properties.
In August, Blackstone bought a mostly vacant Pompano Beach industrial site at Southwest 13th Court for $9.6 million. In January, Stockbridge Capital Group paid $62.25 million for the Powerline Business Park at 4100 Powerline Road.
Existing self-storage properties in Pompano Beach could see an uptick in value in the next few months, since the city commissioners recently imposed a six-month moratorium on self-storage developments in Pompano Beach due to concerns about overdevelopment of the asset class.
In Broward County, industrial rental rates rose to $8.76 per square foot in the second quarter from $8.21 per square foot a year earlier, according to a recent report from Colliers International South Florida. In the second quarter, new industrial properties totaling 531,552 square feet were completed in Broward County.