Philly firm pays $14M for Pompano Beach warehouse

Alterra Property Group paid $671 psf for 21K sf industrial building

Alterra Property Group's Leo Addimando and 1645 Northwest 33rd Street in Pompano Beach (Google Maps, Alterra Property Group)
Alterra Property Group's Leo Addimando and 1645 Northwest 33rd Street in Pompano Beach (Google Maps, Alterra Property Group)

UPDATED, May 18, 11:15 a.m.: A Philadelphia-based commercial real estate firm picked up a Broward County warehouse for $14.3 million.

An affiliate of Alterra Property Group, led by co-founder and Managing Partner Leo Addimando, acquired the 21,306-square-foot industrial building at 1645 Northwest 33rd Street in Pompano Beach, according to records.

The seller is an entity managed by Bernard Paul-Hus, CEO of Fort Lauderdale-based electric and utility contractor Hypower, records show. In 2006, Paul-Hus’ entity paid $2.7 million for the land, and completed the warehouse five years later. Hypower also leases the warehouse.

Roberto Susi and Jose Sasson of Axiom Capital Advisors brokered the off-market deal.

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Founded in 2005, Alterra has executed more than 150 real estate deals across 20 states, totaling more than $2 billion in volume, according to the firm’s website. Alterra focuses on mixed-use, multifamily and industrial properties. The firm entered the South Florida market in November when Alterra purchased two industrial sites in Medley for a combined $25.4 million, according to published reports.

South Florida’s industrial market is not showing any signs of a slowdown, except for a lack of inventory, according to a recent JLL report. In Broward, net absorption reached a record 850,000 square feet in the first quarter, compared to 556,371 square feet during the same period last year. The vacancy rate tumbled to 4.2 percent, compared to 7.9 percent in the first quarter of last year, JLL found. As a result, the average asking rent rose to $11.19 a square foot in the most recent quarter compared to $8.58 a square foot during the same period of 2021.

The northeast Broward submarket, which includes Pompano Beach, had a 4.6 percent vacancy rate in the most recent quarter, compared to 8.7 percent in the first quarter of last year, while the average asking rent rose to $10.59 a square foot, compared to $8.78 a square foot during the same period last year.

In February, Newtown Square, Pennsylvania-based Equus Capital paid a record $239.2 million for Pompano Business Park, representing 1.03 million square feet of warehouses in Pompano Beach. The transaction was part of a $903 million deal for a 5.4-million-square-foot industrial portfolio from Prologis.