Prologis Buys Broward Warehouse Portfolio for $352 Million

Prologis has added another South Florida industrial asset to its portfolio, shelling out a record-breaking $352.2 million for the Davie Business Center.

The San Francisco-based industrial real estate company acquired seven warehouses from affiliates of Atlanta-based IDI Logistics totaling 1.2 million square feet, the South Florida Business Journal reported. That works out to about $300 per square foot.

The sale included the warehouses at 3300, 3350, 3360, 3370, 3380, 3410 and 3430 Davie Road. Ninety-seven percent of them are leased to 25 tenants. Notable tenants include Boeing, Western Union and Comcast.

CBRE National Partners represented the seller in the deal.

Prologis vice president and investment officer Alex Vargas Vila said the portfolio significantly expands the company’s South Florida presence.

Industrial space in Broward County has become increasingly valuable as the amount of vacant land large enough to develop shrinks. The Davie Business Center was built between 2013 and 2022.

The deal shattered a record for this year’s largest industrial trade, which was set in April by Kurv Industrial’s purchase of the East Pompano Industrial Center in Pompano Beach for $219.7 million, The Real Deal previously reported.

Investors are betting on Broward’s industrial market, which shows signs of stabilization, according to CBRE. Vacancy held steady at 5.5 percent in the first quarter, when leasing volume made a 24 percent jump. Rents are increasing, averaging $17.50 in the first quarter.

In March, Blackstone subsidiary Link Logistics bought a warehouse portfolio in Pompano Beach for $163.1 million and another portfolio the following month in Boynton Beach for $195.9 million.

Earlier this month, Dalfen Industrial bought a nine-building warehouse portfolio in Fort Lauderdale and Weston for $99.6 million. Also this month, Reyes Holdings bought a Deerfield Beach warehouse for $84.1 million, and Woodhill Real Estate bought a 10-building industrial portfolio in Hialeah for $32 million.

Prologis is the largest industrial property owner in South Florida with 235 properties spanning over 30 million square feet, according to its website.

— Grace McClung