Arden pays $43M for industrial buildings in West Palm

Arden Group’s logistics investment division bought three warehouses in West Palm Beach for $43 million. 

Arden Logistics Parks scooped up the three buildings at 1100, 1300 and 1500 North Florida Mango Road from affiliates of Alliance HP, according to records and real estate database Vizzda. 

The buyer assumed the $24.1 million balance of the seller’s loan and increased it to $48 million, with the collateral being for the West Palm warehouses, as well as three industrial buildings in Minnesota.

CIT Bank, a division of First-Citizens Bank & Trust Company, is the lender. 

The buildings are 98 percent leased to 40 tenants, according to an Arden Logistics Parks news release announcing the purchase. 

Completed between 1984 and 1986, the one-story buildings, called Landmark Commerce Centre I, II and III, span roughly 195,500 square feet on 1.1 acres, according to the release. Bryn Mawr, Pennsylvania-based Alliance HP paid $34 million for the real estate in 2021, property records show. 

Founded in 2009, Alliance HP is a commercial real estate investor, developer and operator with an industrial portfolio consisting of 45 properties spanning 8.9 million square feet, according to its website. Alliance HP is an affiliate of Jay Shidler’s finance and real estate firm The Shidler Group. Clay Hamlin III and Richard Previdi founded and lead Alliance HP. 

The firm has played Monopoly with Palm Beach County industrial real estate over the past year. Alliance HP paid $15.9 million for the industrial park at 1426 Skees Road, south of West Palm Beach, in May of last year. That acquisition followed the firm’s sale of a distribution center at 1100 25th Street in the city for $12.2 million. 

In 2021, Alliance HP bought an industrial property and adjacent parking lot at 7233 and 7109 Seacrest Boulevard in Lake Worth Beach for $17 million. 

Founded in 1989, Arden Group is a real estate firm and fund manager that has purchased $7 billion worth of properties, as well as managed $12 billion of commercial real estate and more than $2 billion in equity capital, according to its website. It’s led by Craig Spencer. 

Arden Group started Arden Logistics Parks in 2021 to focus on industrial properties.  

The West Palm purchase marks Arden Logistics Parks’ first in the city, according to the release. 

The acquisition also was made through Arden Real Estate Partners fund IV, according to records and an Arden spokesperson. 

Last year, Arden Logistics Parks bought a 19-building portfolio spanning over 764,000 square feet in the Dallas-Fort Worth area. The price was not disclosed at the time of the deal. 

This month, Arden Group won a foreclosure case it had filed on a loan it had provided to Sharif El-Gamal’s Margaritaville Hotel in New York, acquiring the Times Square hotel through a credit bid. 

Palm Beach County’s industrial market experienced a 12.3 percent uptick in asking rents in the third quarter, year-over-year, according to an Avison Young report. 

Due to expensive borrowing costs, investment sales across commercial asset classes has been suppressed. This month, Strategic Storage Growth Trust III paid $19.5 million for the newly built self-storage facility at 8251 West McNab Road in Tamarac. In September, Stockbridge Capital Group bought a six-building warehouse portfolio at 4611-4661 and 4701 Johnson Road, as well as at 4811 and 4911 Lyons Technology Parkway, in Coconut Creek for $48.9 million.