A strong performance in the South Florida industrial sector during Covid-19 didn’t fully translate to new milestones in the market’s top sales.
The average sale price for the top five deals of 2020 — $58 million — also fell below the 2019 average of $111.8 million and the 2018 average of $132 million, according to the analysis.
And the fifth highest industrial deal of 2020, of $40 million, was below the fifth highest deal of 2019 and 2018, of $56 million and $92.3 million, respectively.
The top five deals of this year involved smaller properties than in previous years. The largest industrial deal of 2020 was for 644,000 square feet, compared to 1.6 million square feet last year and 1.3 million square feet in 2018. The average size among 2020’s top five was 372,000 square feet, compared to 2019’s 794,000 square feet and 2018’s 1 million square feet.
Still, some positive signs emerged. The average price per square foot among the top five deals reached $161, more than 2019’s top five average price per square foot of $157 and 2018’s $130.
Below is a closer look at the top five industrial sales of 2020. The list excludes the $4 billion Prologis purchase of Black Creek Group’s Industrial Property Trust industrial properties fund. While brokerage data suggests the deal included five South Florida properties totaling about 1 million square feet that traded for about $86.9 million, TRD’s list only includes fee simple sales that involved a title transfer in property records.
Blackstone pays $94M for Miami-Dade and Broward properties. Blackstone bought 13 industrial properties in Miami-Dade and Broward counties from Elion Partners this summer as part of a $93.5 million portfolio deal in South Florida. In total, Blackstone paid $47.6 million for the properties in Miami-Dade County, and $46 million for five warehouses in Broward County, in Weston, Coral Springs and Pompano Beach. Miami-based Elion Partners is a real estate investment firm focusing on industrial properties.
CenterPoint buys Hialeah warehouses for $61M. CenterPoint Properties, an Oak Brook, Illinois-based industrial real estate firm, bought two warehouses in Hialeah’s Countyline Corporate Park in July, according to records. The seller was Florida East Coast Industries.
Oak Street pays $51M for Sensormatic’s Boca Raton headquarters. A company tied to Oak Street Real Estate Capital bought Sensormatic’s headquarters facility at the Park at Broken Sound in Boca Raton for $51 million. The Chicago-based private equity firm purchased the 244,232-square-foot building at 6600 Congress Avenue for $208 per square foot. Sensormatic Electronics Corp., which is owned by Johnson Controls and is the main tenant, sold the commercial and industrial property.
Badia Spices pays $44M for Sweetwater warehouse. Badia Spices bought a warehouse in Sweetwater for $44 million. The Doral-based spices and herbs manufacturer paid about $141 a square foot for the 313,000-square-foot building at 2200 Northwest 112th Avenue in Dolphin Commerce Park. Tech Data, a publicly traded IT products and services distributor based in Clearwater, sold the warehouse.
Energy drink company drops $40M on warehouse. The maker of Bang energy drinks paid $40.37 million for a warehouse in Pembroke Pines, adding to its assemblage. Weston-based Vital Pharmaceuticals purchased the 249,005-square-foot warehouse known as the South Florida Distribution Center at 20351 Sheridan Street for $165 per square foot. A partnership between Helms Development and Atlanta-based Core5 Industrial Partners sold the property.
SOURCE: Data provided by commercial real estate brokerages such as Colliers International and confirmed with market reports, public records and news clippings.