Cushman & Wakefield announced on Wednesday that it has negotiated the sale of a +915,887-square-foot portfolio of small bay industrial properties located throughout northern Palm Beach County.
Executive Director Scott O’Donnell, Senior Associate Greg Miller, Director Dominic Montazemi and Executive Director Mike Davis represented the estate of Fred Keller in the disposition. SL Florida Small Bay Portfolio, LLC and SL Florida Small Bay Portfolio II, LLC, , affiliates of Iselin, New Jersey-based Silverman Group, acquired the portfolio for $50,070,000 ($55 per square foot).
Cushman & Wakefield’s Capital Markets Team co-marketed the property with CBRE Executive Vice President Robert Smith.
The portfolio is 100 percent occupied and comprises 38 buildings on 16 sites totaling nearly 54 acres in West Palm Beach, Riviera Beach, Magnonia Park and Lake Park. The assets were developed between 1971 and 2003 and represent 5.6 percent of all warehouse and distribution space in the West Palm Beach and Riviera Beach submarkets. The portfolio houses 218 tenants with an average unit size of 4,200 square feet.
According to Cushman & Wakefield’s 3Q 2016 Palm Beach County Industrial MarketBeat Report, the Palm Beach County industrial market remains among strongest in the country with a 3.8 percent overall vacancy rate and 3.3 percent vacancy rate in the warehouse and distribution sector.
“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,” said O’Donnell. “Due to increasing land values and construction costs, new competitive supply of small bay industrial assets has been extremely limited.”
“The opportunity for investors to acquire a stable portfolio of small bay assets of this size and scale combined with the ability to grow in-place rents on an immediate basis made the Palm Beach Small Bay Industrial Portfolio truly a once-in-a-lifetime investment proposition,” added O’Donnell.
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