Medicare Fraud Asset Connected To Fort Lauderdale Executive Airport Sold For $25.2M

Avison Young successfully arranged the bankruptcy sale of the FXE Gateway Complex, a two-parcel, ±10.74-acre property located at 1200 & 1400 NW 62nd St. in Fort Lauderdale for $25.2 million.

The mixed-use property features a 20,150-square-foot class A office building with an attached 18,048-square-foot private hangar that can accommodate up to four planes, a luxury 2-bedroom/2-bathroom apartment overlooking the runway, and a prime development opportunity for fee simple-owned land zoned for additional airplane hangars or industrial development.

John Crotty, CCIM, Principal, lead broker on the sale, along with Michael T. Fay, Chairman of the U.S. Capital Markets Executive Committee and Managing Director of the firm’s Miami operations; David Duckworth; Brian C. de la Fé; and Associate Philip Shapiro handled the sale of the asset. The property will be delivered fee simple, free and clear of any liens and encumbrance to the buyer, 1200 W. Cypress Creek Property, LLC.

Carol Fox of B. Riley Advisory Services served as the liquidating trustee of the property and was represented in the transaction by Gary M. Freedman, Frank P. Terzo, and Lauren Deutch with Nelson Mullins Riley & Scarborough.

“The FXE Gateway Complex offers the best of both worlds: a state-of-the-art office with top-tier amenities such as a spacious private hangar and opulent residences as well as the opportunity to develop an industrial building or an additional airplane hangar on the second lot,” said Crotty. “The asset’s direct access to Fort Lauderdale Executive Airport allows for easy access in and out of one of the region’s busiest airports.”

 

“Our decades-long track record of success working with the courts and receivers to handle intricate litigation and bankruptcy cases made us the top choice to sell this prime asset in a timely manner,” said Fay. “We’re continuing to see more of these special situation transactions and are well-equipped to identify and target an appropriate buyer.”

As South Florida continues to attract the ultra-wealthy both domestically and internationally, demand for hangar space shows no signs of abating – resulting in the FXE Gateway Complex standing as a highly attractive investment opportunity. The Fort Lauderdale Executive Airport’s planned expansion of one of its runways to 7,000 feet will allow for larger jets to make non-stop service to a larger span of geographic regions year-round.

“The buyer has an opportunity to deliver industrial or aviation-related buildings at a time where there’s an unprecedented shortage of new product in the market,” said Duckworth. “According to Avison Young’s second quarter 2024 Fort Lauderdale market research, direct asking rents for industrial property has steadily increased since 2016 and direct vacancy has been decreasing since 2021.”