Newmark Knight Frank (NKF) has completed the sale of a 69,834-square-foot freestanding industrial warehouse in Medley 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.
NKF 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 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 NKF’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.