Newmark announced today it completed the sale of a 69,834-square-foot freestanding industrial warehouse in Medley, Florida for $9.75 million. BRW Floors, Inc., a high-end hardwood flooring distribution business, sold the building to Black Creek Group, a Denver based real estate investment manager and development firm. The sale comes as investors continue to compete for a limited supply of premium industrial space currently available in South Florida due to record demand fueled by the e-commerce revolution.
Located at 12800 NW South River Drive, the building was originally built in 2000 and offers immediate access to US Highway 27 and Florida’s Turnpike. The facility includes 7,000 square feet of Class A office space, 15 dock doors with room to add more, 24-foot ceilings and a 120-foot fenced and secured truck court.
Newmark Miami’s Executive Managing Directors Nick Wigoda and Steve Medwin were the only brokers involved in the deal. Medwin and Wigoda facilitated the sale process by leveraging long-term relationships the two have with top institutional and private investors interested in South Florida industrial properties. After receiving numerous competitive offers, BRW Floors agreed to sell the warehouse to Black Creek Group who has a strong track record of purchasing and developing similar buildings in the neighborhood.
“With limited inventory available and a steady supply of new industrial product still under construction, we’re seeing all of the conditions typically associated with a healthy seller’s market,” said Wigoda. “Strong demand will continue to push rental rates up in the months ahead, signaling a bright future for the new owners of this facility.”
According to Newmark’s 2Q19 South Florida industrial report, the average asking rent now sits at $8.97/SF, and is expected to eclipse the $9.00/SF mark before the end of the year. Year-to-date leasing activity has already surpassed 10 million square feet of total transactions, with the region on track to beat 2018’s record of more than 8.2 million square feet of mid- to large-sized deals. More than 5 million square feet of mid- to large-sized deals have been recorded in the first two quarters of 2019.
Newmark (“Newmark”), operated by Newmark Group, Inc. (“Newmark Group”) (NASDAQ: NMRK), is one of the world’s leading and most trusted commercial real estate advisory firms, offering a complete suite of services and products for both owners and occupiers. Together with London-based partner Knight Frank and independently-owned offices, Newmark’s 16,000 professionals operate from approximately 430 offices on six continents. Newmark’s investor/owner services and products include investment sales, agency leasing, property management, valuation and advisory, diligence, underwriting, government-sponsored enterprise lending, loan servicing, debt and structured finance and loan sales. Occupier services and products include tenant representation, real estate management technology systems, workplace and occupancy strategy, global corporate services consulting, project management, lease administration and facilities management. For further information, visit www.ngkf.com.