Distressed Hialeah Industrial Portfolio Trades For $26.5 Million

North Miami-based I.M.C. Properties paid $26.5 million for a group of warehouses in Hialeah in separate transactions that were either short sales or lender-owned sales.
The company, led by President Yoram Izhak, has been one of the most active buyers of distressed commercial property in South Florida in recent years. It’s known for bringing in new tenants and upgrading the facilities.
I.M.C. Properties’ made the largest acquisitions through affiliate Hialeah Industrial Portfolio LLC. Director of acquisitions and finance Carlos Segrera said it paid $22.5 million for nine industrial properties totaling 437,879 square feet. The sellers were all managed by Julio Arriaga and the deal required months of negotiations with TD Bank so it would allow a short sale on the $33 million mortgage covering those properties, Segrera said.
These properties are 98 percent occupied and were very well maintained but the Arriaga’s companies simply had too much debt on them, Segrera said. These properties were acquired for $51.50 per square foot, which is well below replacement cost, and they generate net operating income of $2.2 million, he added.
The sellers and addresses are as follows:

• Sterling Holdings: 9500, 9550, 9551, 9605 and 9695 N.W. 79 ^th Ave. – near one of the busiest Wal-Mart stores in the nation
• Doral Sterling Holdings II: 7400 N.W. 55 ^th Street
• Doral Sterling Holdings: 7401 N.W. 54 ^th Street
• 103 Commerce Park: 8030 N.W. 103 ^rd Street
• Trojan Sterling: 910 to 960 West 22 ^nd Street
• Woods Sterling: 1725 West 31 ^st Place and 460 West 29 ^th Street

Weston-based Florida Community Bank provided a $16.4 million loan for the acquisition.
In the other deal, I.M.C. Properties affiliate 20 Street LLC paid $4.025 million to Heartwood 45, an affiliate of Fort Lauderdale-based BBX Capital Corp., for the Las Flores Center industrial/office park. That represents a 35 percent discount from the $6.2 million mortgage that BBX (NYSE: BBX) used to seize the property in foreclosure in 2013 from Las Flores Land Investment.
The property was originally financed by BankAtlantic, which BBX sold in 2012.
Las Flores Center has 86 commercial condos totaling 116,290 square feet at 2600 to 2666 N.W. 21 ^st Terrace.
The property was brokered by John Crotty, CCIM of Colliers International South Florida.
Segrera said Las Flores Center was 60 percent vacant and it will aggressively rent out the available units.
Year to date, I.M.C Properties has purchased over $50 million in property totaling over 1 million square feet, Segrera added.
 
Source:  SFBJ