Denver-based EverWest Real Estate Investors bought a fully leased Fort Lauderdale industrial property for $14.1 million.
EverWest purchased the warehouse at 635 Northwest Fourth Avenue and a 0.3-acre lot directly south of the building from Dixie Investments IV, according to the buyer’s broker.
Jose Sasson and Roberto Susi of Axiom Capital Advisors represented EverWest. Yishai Sinai of Biscayne Advisors represented the seller.
Charles Frasier, manager of Dixie Investments IV, bought the 62,568-square-foot warehouse for $954,300 in 1993 and the next-door lot for $6,000 in 1997, transferring ownership of both properties to his Dixie Investments in 2005, according to records. The building was constructed in 1986.
The small-bay building is divided into spaces up to 10,000 square feet, Sasson said. It includes 24-foot clear heights and 10 dock-high doors. It’s unclear whether the buyer plans to develop the vacant lot, which currently is used by one of the tenants, Sasson said.
Tenants include boat accessories supplier Cruising’ Tikis and lighting contractor RLS Lighting.
Small-bay industrial properties are in demand, as they offer storage for retailers who have opted out of brick-and-mortar storefronts, Sasson said. Renting industrial space for e-commerce distribution is much more affordable than renting a storefront.
Small-bay buildings are “a very good hedge against inflation due to the rent growth that we have seen and continue to expect to see,” Sasson said.
EverWest, led by CEO Rick Stone, was founded in 2013. Last year it became an affiliate of alternative asset manager Sagard, which has offices in Montréal and New York, according to both companies’ websites.
EverWest invests in various property types. Its other South Florida properties include a 24,730-square-foot retail building at 3034 Grand Avenue in Miami’s Coconut Grove and a 190,000-square-foot industrial property at 5770 Miami Lakes Drive in Miami Lakes.
The South Florida industrial market has prospered amid high demand, partly created by e-commerce growth, and a lack of developable land. This has allowed landlords to push up rents and has stirred investment appetite.
Broward County’s industrial asking rent climbed to $11.41 per square foot in the first quarter, up from $10.03 in the first quarter of last year, according to Colliers. The vacancy rate dropped to 4.2 percent from 6.6 percent.
In another recent Fort Lauderdale deal, Morningstar Properties in April bought the self-storage facilities at 421 Northwest First Avenue and 125 Northwest Fourth Street in the Flagler Village neighborhood for almost $30 million.