SROA Capital pays $20M for Hallandale Beach industrial-flex property

176K sf building includes storage and offices, records show

SROA Capital's Ben Macfarland III with 000 Pembroke Road (LinkedIn, Loopnet)
SROA Capital's Ben Macfarland III with 1000 Pembroke Road (LinkedIn, Loopnet)

SROA Capital picked up a warehouse-flex building in Hallandale Beach for $20 million, amid continuing investment appetite in the robust industrial market.

SROA, through an affiliate, bought the property at 1000 Pembroke Road from an affiliate of Patricio Ureta’s Megacenter, according to a deed.

The building spans 175,863 square feet and was constructed in 1986 on 2.4 acres, property records show. Megacenter bought it in 2015 for $7.2 million.

The warehouse includes self-storage and space for offices and businesses. Tenants include Livescan Fingerprinting, Padel Life & Soccer sports facility and Dixie Movers.

SROA, based in West Palm Beach, is a private equity real estate and technology firm that invests in and develops self-storage properties on behalf of its principals and partners, according to the company’s website. Its portfolio spans roughly 300 facilities totaling 16 million square feet in the Midwest, Northeast and Southeast. Ben Macfarland is co-founder and CEO.

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Megacenter, a subsidiary of Chile-based Red Megacentro, leases properties and develops self-storage, retail, office, co-working, showroom and industrial real estate, according to its website. The company lists other storage and office properties in Miami’s Little River and Brickell and throughout Texas.

In February, Megacenter sold a newly built Miramar warehouse and distribution facility at 7481 Riviera Boulevard to Seagis Property Group for $13.3 million.

The South Florida industrial market is booming because of high demand and dwindling supply, allowing landlords to increase rents and prompting a flurry of deals.

In the first quarter, Broward County’s industrial vacancy rate dropped to 4.2 percent, matching pre-pandemic levels, according to a JLL report. The average asking rent reached $11.19 a square foot, up from $8.58 a square foot during the same period last year.

Among recent deals, an entity managed by Denver-based EverWest Advisors bought Bang Energy’s Pembroke Pines warehouse at 20351 Sheridan Street for $58 million. The January sale was for $18 million more than the property’s purchase price a year earlier.

In another Broward deal, Bridge Industrial scooped up the Pompano Beach Commerce Park industrial complex at 1543, 1541 and 1551-1571 North Powerline Road for $46.3 million in December.