Pembroke Pines warehouse, dev site sold for $60M

Summit Real Estate Group’s Arrowrock industrial fund paid $1.3M per acre

Summit Real Estate Group’s John Ross and John Owoc with 20311 Sheridan Street
Summit Real Estate Group’s John Ross and John Owoc with 20311 Sheridan Street (Summit Real Estate, Google Maps, Getty)

Ousted Bang Energy CEO John “Jack” Owoc, through an affiliate, sold a Pembroke Pines warehouse and an adjacent industrial development site for a combined $59.8 million. 

The deal comes on the heels of Bang Energy parent company Vital Pharmaceuticals’ sale in bankruptcy proceedings to Monster Energy this month. Vital Pharmaceuticals filed for Chapter 11 reorganization in October, listing more than $1 billion in liabilities.

The Pembroke Pines real estate wasn’t part of Monster Energy’s purchase of Vital Pharmaceuticals’ assets. 

St. Louis-based Summit Real Estate Group, through its Arrowrock US Industrial Fund IV, bought the flex-warehouse at 20311 Sheridan Street for $39.8 million, and the 23-acre site zoned for industrial development for $20 million, according to records and real estate database Vizzda. The buyer financed the purchase with a $27.4 million loan from Central Bank, also based in St Louis.

Mike Davis was part of the Cushman & Wakefield team that represented the seller. Rick Etner, also of Cushman, will work a team at the brokerage to lease the building and a planned project on the next-door site. 

Completed in 2018, the 219,000-square-foot flex-industrial building is on 11.6 acres. The building, which Bang used as a distribution facility, is vacant. 

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The sale of the entire property breaks down to $1.3 million per acre. 

Vital Pharmaceuticals and its affiliates sought bankruptcy protection after coming out on the losing end of litigation by Monster Energy. 

Months prior to the Chapter 11 filing, a California jury sided with Monster Energy in its suit against rival energy drink company Bang alleging false advertising and trade secret misappropriation, according to media reports. The jury handed down a $293 million damages verdict against Bang. This came after a California arbitrator also sided with Monster, and its affiliate Orange Bang, awarding $175 million against Bang in a trademark infringement case. Vital Pharmaceuticals had appealed the verdicts by the time it filed for bankruptcy. 

Led by John Ross, Summit started the Arrowrock fund with the goal to develop industrial real estate in the Southeast U.S., according to Summit’s website. It plans to start construction of a 280,000-square-foot spec building on the vacant parcel early next year, according to a Cushman news release. 

The deal comes amid an uptick of industrial real estate sales. After expensive financing costs put a dry spell on South Florida commercial deals late last year, some industrial assets started trading again this year. 

This month, Blackstone’s Link Logistics subsidiary dropped $162 million for the properties at 710-750 South Powerline Road and 3155-3161 Southwest 10th Street within the Quiet Waters Business Park. That came on the heels of Walton Street Capital paying $51.5 million for the warehouses at 3455 Northwest 54th Street, 5530 Northwest 32nd Court and 5400 Northwest 32nd Court in the Brownsville neighborhood of Miami-Dade County. 

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