A nearly 1 million-square-foot industrial portfolio on 16 sits across northern Palm Beach County has traded hands. The sale price: $50.07 million.
Cushman & Wakefield negotiated the sale of a 916,000-square-foot industrial portfolio. Executive director Scott O’Donnell, senior associate Greg Miller, director Dominic Montazemiand executive director Mike Davis represented a private trust in the disposition.
SL Florida Small Bay Portfolio and SL Florida Small Bay Portfolio II acquired the industrial portfolio for $55 per square foot. CushWake’s Capital Markets team co-marketed the property with CBRE executive vice president Robert Smith.
“Palm Beach County has blossomed into one of the most coveted industrial investment markets in the United States as a result of growing underlying demand fundamentals and exceedingly high barriers to entry,” O’Donnell tells GlobeSt.com. “Due to increasing land values and construction costs, new competitive supply of industrial assets has been extremely limited.”
The industrial portfolio, which includes 38 buildings, is 100% occupied. The 16 sites on which they sit totaling nearly 54 acres in West Palm Beach, Riviera Beach, Magnonia Park and Lake Park.
Developed between 1971 and 2003 and represent 5.6% of all warehouse and distribution space in the West Palm Beach and Riviera Beach submarkets. The industrial portfolio houses 218 tenants with an average unit size of 4,200 square feet.
“The opportunity for investors to acquire a stable portfolio of industrial assets of this size and scale combined with the ability to grow in-place rents on an immediate basis made the Palm Beach Industrial Portfolio truly a once-in-a-lifetime investment proposition,” says O’Donnell. Located within a 3.5-mile radius, the industrial portfolio offers true infill locations in some of South Florida’s most desirable industrial submarkets with excellent access to Interstate 95.
According to Cushman & Wakefield’s 3Q 2016 Palm Beach County Industrial Market Beat Report, the Palm Beach County industrial market remains among strongest in the country. The market has a 3.8% overall vacancy rate and 3.3% vacancy rate in the warehouse and distribution sector.