Transwestern’s South Florida industrial team facilitated 430,000-square-feet of transactions for PriceSmart Inc. (NASDAQ: PSMT), the largest operator of membership warehouse clubs in Central America and the Caribbean. The transactions represent a nearly 20 percent expansion of its footprint at Flagler Station, located at 10800 NW 100th St. in Medley.
Transwestern Senior Managing Directors Ben Eisenberg and Walter Byrd, Senior Vice President Thomas Kresse and Senior Associate Carlos Gaviria negotiated a 330,000-square-foot build-to-suit in Flagler Station III, the final phase of the business park. Flagler Global Logistics will build the state-of-the-art, Class-A distribution center with anticipated completion in second-quarter of 2017. The new building will have 32-foot clear heights and will include 120 loading positions with parking for an additional 104 trailers.
In addition, Transwestern negotiated a lease extension for 100,000 square feet of PriceSmart’s existing 360,000 square feet of occupied space within Flagler Station II, which PriceSmart will use to expand its refrigerated and frozen space.
Transwestern has been retained by PriceSmart to sublease the remaining 260,000 square feet of Class A space.
“By fully occupying a new building while maintaining 100,000 square feet within its current location, PriceSmart has advantageously positioned itself to maximize space requirements while benefitting from advancements in efficiencies,” said Eisenberg. “The expansion and new configuration will allow PriceSmart to more effectively serve its growing consumer base within Central America and the Caribbean.”
Demand for industrial space within the Medley submarket has continued on an upward trend for the past 11 quarters, pushing the submarket’s vacancy to 3.6 percent, according to Transwestern research.
“We are confident that the space available for sublease will be met with high demand, as Medley currently only has 550,000 square feet of space available,” said Byrd. “Our research suggests that the disparity between space available and demand will continue to escalate with absorption exceeding the pace of new deliveries in upcoming quarters, resulting in the vacancy rate dipping below 3.0 percent in the next 12 to 18 months.”
Flagler was represented in-house by Dan Marcus, Executive Vice President of Real Estate Development, and Chris Sutton, SIOR, Vice President of Development.
“Flagler is honored to have been selected by PriceSmart to construct their new state-of-the-art distribution center,” said Marcus. “This build-to-suit for PriceSmart is the final building at Flagler Station. We are now developing our master-planned business park, Countyline Corporate Center, just a few miles to the north, where Flagler has already started construction of our first warehouses for lease and sale.”
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