A two-building industrial property in Sunrise has been sold for nearly $43 million to a Denver real estate investment trust that is targeting South Florida for future acquisitions.
The sale of Marina West Business Center, located at 13800 NW Second Street, is the year’s second priciest industrial transaction in the region behind the August sale of the Weston Business Center for about $85 million.
The Marina West deal closed Thursday, and Broward County recorded the transaction Monday.
The seller, an affiliate of Atlanta-based IDI, developed the 390,000-square-foot Marina West in 2002. It paid $5.85 million for the then-vacant 22.49-acre site in July 2000.
The buyer of the property off I-595 east of I-75 is an affiliate of Denver-based Industrial Income Trust, a private REIT that buys and operates industrial facilities nationally, according to its website.
Marina West is the first South Florida industrial property purchased by IIT, which owns a facility in Tampa.
Building A in Marina West is fully leased to Watson Pharmaceuticals, which has occupied the 276,000-square-foot facility since early 2009. Building B is about 65 percent occupied. Tenants include Abrika Pharmaceuticals, Elegant Distributors and Schindler Elevator.
The Marina West sale is part of a larger portfolio transaction between IDI and IIT,
IIT announced earlier this month it was buying eight buildings from IDI for about $104.5 million. The portfolio, which includes other properties in Atlanta and Dallas, totals 1.6 million square feet on 88.2 acres. The portfolio is 93 percent leased to 16 tenants.
New York Life Insurance gave IIT a $61 million loan for the portfolio purchase, according to Broward County records.
Including the portfolio transaction, IIT — which began buying properties in June 2010 — has paid $1.2 billion for 117 buildings totaling about 20.3 million square feet in 14 markets.
In a sign IIT executives plan to shop aggressively for South Florida properties, the company’s website identifies the region as a “target market.”
The company announced last week that its two-year initial public offering has been extended for up to one additional year. The offering, which was originally scheduled to conclude Sunday, has generated about $563 million through the sale of about 57 million shares.
An affiliate of Denver-based Dividend Capital is the sponsor of IIT.
“We have been very disciplined in identifying, acquiring and managing quality assets in our selected target markets,” McGonagle said in IIT’s announcement of the extended public offering.
Dividend has a history of backing major South Florida industrial investors. The company also sponsored DCT Industrial, which owns properties in Miami, Doral and Pompano Beach.
Even as part of a larger portfolio deal, the Marina West sale stands out during a year when expensive industrial transactions were scarce in South Florida.
The Weston Business Center, which was the most expensive industrial property sold in the region for two consecutive years, set pricing standards for the market. After paying $65 million for the 679,000-square-foot industrial park in May 2010, RREEF made a nearly $20 million profit, excluding property taxes and carrying costs, in the Aug. 26 sale of the complex. The price per square foot jumped from $95 last year to $125 in the latest sale.
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