Butters Construction & Development and a silent equity partner acquired a 26-acre site in Pompano Beach for $15.4 million with plans for industrial development there.
Pompano Center of Commerce, a subsidiary of Prologis, sold the vacant site at the southwest corner of Northwest 18th Street and Northwest 15th Avenue to Pompano Industrial Venture, an affiliate of Coconut Creek-based Butters and an undisclosed capital partner.
Branch Banking & Trust Co. provided a $21.95 million loan to cover the acquisition and part of the construction.
Butters Director of Acquisitions Adam Vaisman said the project will be the Pompano Center of Commerce Phase II, after the developer previously built the first phase. The industrial project would total 375,000 square feet in four buildings, he said.
Site work has already started for the first three buildings with a combined 318,000 square feet and they should be completed in summer 2017, Vaisman said. They can accommodate tenants from 5,000 to 100,000 square feet and will have 30-foot clear height.
Vaisman said Butters is moving forward quickly with the project because it’s a large parcel near the highway – the Copans Road intersection of Interstate 95 – and such sites are rare in Broward County.
There’s strong demand from shipping, logistics and e-commerce companies to have warehouses in Pompano Beach, Vaisman said.
“This is for your typical Pompano user who wants to expand or pay a little more in rent for a new building with 2017 facilities,” Vaisman said. “They would be paying the same amount of ground rent with more cubic space [because of the added height].
According to CBRE’s second-quarter industrial market report for Broward County, the industrial vacancy rate in the Pompano/Fort Lauderdale area was 4.3 percent and the average asking rent was $7.55 per square foot. Broward had 668,360 square feet of industrial space under construction, but none in Pompano Beach.
Also in Pompano Beach, IDI Gazeley plans to break ground on the 143,563-square-foot Pompano Business Center in the first quarter of 2017 and it’s seeking approval for the 495,450-square-foot Rock Lake Business Center, which could begin construction in summer 2017.
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