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Blackstone Picks Up $94 Million Worth Of Industrial Properties From Elion Partners

Investment giant Blackstone paid a combined $45.9 million to Elion Partners for five warehouse properties in Broward County. However, a source with knowledge of the deal said the transactions included eight properties in Miami-Dade. When considering all properties in Miami-Dade and Broward counties, the total price was $93.5 million.

The deal shows there remains strong demand for industrial real estate in South Florida as occupancy rates are high. North Miami Beach-based Elion Partners acquired these warehouses in 2018 and 2019, and the new sale prices were significantly higher than the previous deals.

Ken Krasnow, vice chairman of institutional investments at Colliers International South Florida, said the deal is a sign big investors like Blackstone have a strong desire to acquire industrial properties in South Florida, even smaller warehouses.

New York-based Blackstone used affiliate PP Sunshine Owner LLC to purchase the properties.

Here’s a breakdown of the transactions in Broward:

  • EIV 2121 LLC, an affiliate of Elion Partners, sold the 90,818-square-foot industrial building at 2121 N.W. 15th Ave., Pompano Beach for $15.2 million. It last traded for $10.6 million in 2019.
  • Elion IV WBP LLC sold the 66,478-square-foot industrial building at 1800 N. Commerce Parkway, Weston for $12.7 million. It previously sold for $9.03 million in 2018.
  • EIV 935 LLC sold seven warehouse condos for a combined 36,621 square feet in Contractors Business Park at 935 N.W. 31st Ave., Pompano Beach for $6.72 million. They last sold for $4.28 million in 2018.
  • EIV 3880 LLC sold 43,398 square feet of industrial space at 3880-3898 N.W. 124th Ave., Coral Springs for $6.28 million. It last traded for $4.8 million in 2018.
  • EIV 3400 LLC sold 41,348 square feet of industrial space at 3400-3450 Park Central Blvd., Pompano Beach for $5 million. It last sold for $4.15 million in 2018.
  • Regions Bank provided a $47.18 million mortgage to PP Sunshine Owner covering the properties, plus some additional buildings in Miami-Dade County. The deeds covering the Miami-Dade properties have yet to be disclosed in county records.

The Miami-Dade properties are:

  • The 38,561-square-foot warehouse at 1730 W. 38th Place, Hialeah.
  • The 33,472-square-foot warehouse at 5280 N.W. 165th St., Hialeah.
  • The 59,135-square-foot warehouse at 2875 N.W. 77th Ave., Miami.
  • The 32,759-square-foot warehouse at 16100 N.W. 49th Ave., Hialeah.
  • The 64,430-square-foot warehouse at 16200 N.W. 49th Ave., Hialeah.
  • The 48,777-square-foot warehouse at 16363 N.W. 49th Ave., Hialeah.
  • The 24,884-square-foot warehouse at 11351 N.W. 36th Terrace, Doral.
  • The 63,723-square-foot warehouse at 7425 N.W. 79th Ave., Medley.

Founded in 2010, Elion Partners manages over $1.5 billion in real estate.

According to the second quarter report from CBRE, the Broward County industrial market had a 7.2% vacancy rate and positive net absorption of 114,789 square feet during the quarter, despite the impact of the Covid-19 pandemic.

 

Source:  SFBJ