BBX Logistics Properties, a logistics development firm specializing in identifying high barrier-to-entry infill locations in Florida and other Eastern U.S. markets and a wholly-owned subsidiary of BBX Capital Real Estate and BBX Capital, Inc. (OTCQX: BBXIA)(PINK: BBXIB), announced the formation of a joint venture with PCCP, LLC, a real estate finance and investment management firm, and the successful acquisition of approximately 40 acres of land north of Atlantic Avenue on U.S. 441 in Delray Beach.
The joint venture intends to develop the site, which is entitled with rights to build up to 672,533 square feet of logistics space, into BBX Park at Delray, a logistics facility expected to be comprised of three buildings. The initial phase of the project is expected to be construction of an approximately 200,000-square-foot building with plans to construct two additional buildings in the future.
“Our plans at BBX Park at Delray reflect our goal of delivering high-quality logistics space in the heart of the rapidly growing population center of Western Palm Beach County. We believe our ability to bring this project to fruition in today’s environment is a testament to the quality of the development and the efforts of our combined teams. We couldn’t be more excited to get started,” said Seth Wise, President of BBX Capital Real Estate.
“We believe the acquisition of this strategic parcel of land is a monumental step forward for BBX Logistics Properties and PCCP towards our goal of serving the needs of the residents of [the] Palm Beach County community,” said Mark Levy, President of BBX Logistics Properties.“We believe BBX Park at Delray will redefine the standards of logistics facilities, and we are excited to embark on this journey with PCCP to deliver a space that will contribute to local employment and fuel economic growth. We want to thank the Palm Beach County Commissioners and County staff who worked so tirelessly with us.”
“We are pleased to partner with BBX Logistics Properties on this venture. Our partnership underpins PCCP’s strategy to invest in Class-A logistics facilities in strategic locations,” said Kevin Chin, Managing Director with PCCP. “Together with BBX Logistics Properties, we look forward to working towards achieving new benchmarks for sustainable and efficient logistics projects. ”
Focusing on attracting tenants who cater to the community, the development plans for BBX Park at Delray allow for the division of space into smaller units, with each of the planned three buildings expected to accommodates paces as small as 50,000 square feet. BBX Logistics Properties and PCCP also hope to incorporate sustainability initiatives in the development plans, including solar-ready roofing, electric vehicle charging stations, indoor air quality enhancements, and advanced exterior lighting control systems.
The joint venture currently expects to obtain debt financing and commence site development and construction of the initial phase of the project in the first quarter of 2024.
In connection with the formation of the joint venture with PCCP, BBX Capital Real Estate contributed $2.9 million to the venture with PCCP and currently expects to contribute an additional $2.5 million to the venture based on its expected share of the estimated total development costs.