Ambrose scores $27M construction loan for warehouse project in Jupiter

Indianapolis-based developer breaking ground on 246K sf distribution facility

Ambrose’s Aasif Bade and a rendering of the warehouse at 15810 Walgreens Drive in Palm Beach
Ambrose’s Aasif Bade and a rendering of the warehouse at 15810 Walgreens Drive in Palm Beach (LinkedIn)

Ambrose Property Group nabbed a $27 million construction loan to build a spec warehouse in Jupiter.

Cincinnati-based Fifth Third National Bank provided the financing for the planned 246,000-square-foot distribution facility at 158110 Walgreens Drive, records show. Ambrose, an Indianapolis-based industrial developer led by CEO Aasif Bade, acquired the 17-acre development site in Palm Beach Park of Commerce for $5.6 million last year.

The project is scheduled to break ground this month with an anticipated completion by the end of this year, Ambrose Vice President Dave Loundenslager said in a statement. Ambrose is partnering with Fort Lauderdale-based Helms Development to build the facility, and Colliers is handling leasing, Loundenslager added.

The proposed warehouse is near Walgreens Distribution Center, a 98-acre industrial property in the same business park. The distribution center was acquired by MG3 Group for $78 million in November.

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Fairfield, New Jersey-based Woodmont Industrial Partners is another major player at Palm Beach Park of Commerce. Last year, Woodmont paid $21 million for a warehouse and $40.4 million for 116.6 vacant acres in the business park, which spans 1,300 acres. The company plans to build eight warehouses, with the first two buildings, with 354,390 square feet combined, scheduled for completion this year.

Woodmont acquired the properties from Atlanta-based TPA Group, the master developer of Palm Beach Park of Commerce.

After maintaining a torrid pace in recent years, South Florida’s industrial market showed signs of softening in the fourth quarter of 2022. In Palm Beach County, the vacancy rate climbed to 5.1 percent, compared to 4.1 percent during the same period in 2021, according to a recent Newmark report. The average asking rent slid to $12.66 a square foot in the fourth quarter of last year, compared to $13.07 a square foot in the preceding quarter.

Industrial investment sales volume in Palm Beach County rose to $542 million in last year’s final quarter, compared to $179 million in the third quarter of 2022, the report shows.