Cushman & Wakefield has arranged the $59,650,000 sale of Bang Energy’s former warehouse/distribution center, an industrial property which includes a vacant building and approximately 23.2 acres of land in Pembroke Pines.
Mike Davis, Dominic Montazemi, Rick Brugge, Rick Colon, Greg Miller, and Mike Ciadella of Cushman & Wakefield arranged the sale on behalf of the seller. The property was sold by Sheridan Real Estate Investment A LLC & Sheridan Real Estate Investment C, LLC and acquired by a new entity led by Summit Real Estate Group’s Arrowrock US Industrial Fund IV. An active industrial developer in the U.S. Southeast for years, the acquisition represents Summit’s continued interest and investment in the Florida market.
Rick Etner, Matthew McAllister, Christopher Thomson, and Chris Metzger of Cushman & Wakefield’s South Florida Industrial Team also supported the sale process and will represent the buyer in leasing the existing vacant building along with a spec building to be developed on the property.
“With Broward County vacancy rates at historical lows and only 1.3 million square feet of bulk industrial under-construction on the horizon, the sale reflects a unique value-add and development opportunity that garnered broad interest from investors, users, and developers. Ultimately, we selected a buyer that was able to provide flexibility in an un-certain bankruptcy-initiated sale process with the resources and capability to navigate a challenging debt market,” said Montazemi, Executive Managing Director at Cushman & Wakefield.
Located at 20311 Sheridan St., Bang Energy’s former warehouse/distribution center includes a 224,560-square-foot building that once doubled as a manufacturing facility for energy drink shots and the company’s corporate accounting office. Summit is planning extensive make-ready work and actively marketing the building for lease. The adjacent ±23.2 acres of land, 13 acres of which are developable, is zoned for industrial ground-up development. Construction of a ±280,000-square-foot building on the property is anticipated to commence in Q1 2024 with delivery occurring in Q4 2024.
Situated along Sheridan Street (SR 882) in the Southwest Broward submarket of Broward County, the former Bang Energy warehouse/distribution center boasts convenient access to primary South Florida transportation arteries and ports via I-75, I-595, Highway 27, and Florida’s Turnpike.
“The strong demographic growth and the in-fill nature of South Florida continues to provide an ideal backdrop for continued rent-growth supporting investor returns in these inflationary times,” added Davis, Executive Vice Chair at Cushman & Wakefield. “Rents have grown nearly 20% year-over-year with Broward County recording higher-record rents in five straight quarters with the average now well into the mid-to-high teens on a net-basis. With limited development potential, this dynamic is likely to continue.”
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