Canada-based generic pharmaceutical company Apotex Corp. bought a warehouse in Miramar for $50 million.

An affiliate of Apotex, called Sherm Realty Corp., bought the 302,864-square-foot warehouse Jan. 31 for $165 per square foot.

The seller was Atlanta-based industrial property developer IDI Gazeley, which built the warehouse in 2014.

5501 SW 29 Street in Miramar

The warehouse is located on a 20-acre lot in a corporate park that IDI Gazeley developed at 15501 Southwest 29 Street in Miramar, northwest of Miramar Parkway and Interstate 75. The park’s tenants include Kellstrom Defense Industries Inc.

Colliers International reported that the pace of industrial-space absorption in Broward during last year’s fourth quarter was the fastest in a decade and supported “skyrocketing” lease rates. Colliers reported that 37 percent of all Broward industrial space leased last year was leased in the fourth quarter, about 936,000 square feet.

 

Source: The Real Deal

The city’s blighted northwest section might be land-locked, but its vacant lots could soon become waterfront property.

City officials say they plan to build a set of canals in a kind of project never before seen in Florida. And once it is complete, they hope that high-density housing, hotels, restaurants and stores will then be built around it.

River Walk in San Antonio, built in the 1930s, is the model, said Emily Marcus, a project manager with the city’s redevelopment agency.

“Pompano is a blank slate to really develop properly,” said Nguyen Tran, who oversees northwest redevelopment.

A main canal would run along the half-mile stretch between Interstate 95 and Dixie Highway, north of Atlantic Boulevard and south of Northwest Third Street. A concept drawing shows small canals also running north to south. Currently, the only other canal in the area runs underneath Atlantic Boulevard.

In this new vision, pedestrian bridges would invite strolling over the main canal. Sidewalks and seawalls would line the waterway. It would build on the ambience created in the last two years with the opening of two city-owned art venues in the area.

Carlos Adoriso, a county engineering supervisor, said he’s never heard of a project like this in the area before. But city officials are determined to transform this 38-acre swath of old houses, boarded-up structures and vacant lots into a place where people can work, live and go out for the evening without getting into a car.

“Pompano has very little urban housing for college graduates,” Marcus said. “You look at the millennials, who have the low rate of getting their driver licenses. They are looking to live in urban pedestrian locations.”

A designer for the project will be selected sometime this year. And city officials expect it will take two or three years before construction can start, depending on the speed of permits from the state and county. But some redevelopment is already starting to take place in the area.

The 731 Retail Shoppes, which the city redevelopment agency built and opened in 2014, was the first new retail in the area in 40 years, city officials say. It would be across the street from the main canal.

Last fall, ground was broken on City Vista, a 111-unit apartment complex with ground floor retail that the redevelopment agency will manage and that is within sight of the main canal.

 

Source: SunSentinel

In the late 1950s the Port of Palm Beach conducted more trade with Cuba than any other port in the world.

Starting in 1946, the West India Fruit and Steamship Co. transported everything from cars to fertilizer, household goods and food to Cuba from the Riviera Beach-based port, and Cuba sent commodities such as sugar, tomatoes, pineapple, and of course, rum, back on the ships.

The company began the Havana Car Ferry service in 1947. It offered a quick, reliable carload freight service between the port and Cuba, according to “Gateway,” a magazine the port used to publish. The trade ended in August 1961 when the U.S. imposed an embargo on all shipments to Cuba after Fidel Castro took control. Trade with Cuba made up half the port’s business, and when the trade ended, the port almost died. It had to borrow money to make payroll to pay its three employees.

On Friday morning, an important step toward once again ramping up trade with the island nation is scheduled to take place. A delegation from the National Port of Administration of Cuba and Port of Palm Beach officials will meet to sign a memorandum of understanding in the port’s boardroom.

The agreement outlines joint initiatives the two parties will undertake, stating that it is “within their mutual interest to establish an alliance of cooperation aimed at facilitating international trade and generating new business by promoting the all-water route between Asia, Europe, Latin America and the Gulf Coast of the United States through the Port of Palm Beach and the Ports of Cuba.”

Port of Palm Beach executive director Manuel “Manny” Almira, who was born in Cuba, said he has relentlessly pursued the project for the last six years. He has worked with the previous Cuban Ambassador Jorge Alberto Bolaños Suarez and now is working closely with Ambassador José Ramón Cabañas Rodríguez and Rubén Ramos Arrieta, minister counselor at the Economic & Trade Office, Cuban Embassy, who have requested that the Cuban government approve the agreement.

From what Almira has been told, only two other ports in Florida, Port Everglades in Broward County and Port of Tampa, have been selected to sign the agreement. Almira said he believes the accord is one of the many steps that would pave the way for a service or services to be established from the Port of Palm Beach to Cuba.

The Cuban delegation plans to make a presentation about the island nation’s Port Mariel special development zone, inland waterway, seaport capabilities and the foreign trade investment to local business people at the port and throughout Palm Beach County.

During its visit to Palm Beach County that starts on Thursday, the delegation will attend a Northern Palm Beach County Chamber of Commerce breakfast, have lunch on the Grand Celebration cruise ship based at the port, make a presentation to the Palm Beach County Commission and attend at event at CityPlace in West Palm Beach. The group will depart for Washington, D.C. on Saturday.

Port Mariel, on Cuba’s northwest coast, is one of three container ports, along with the ones from Santiago and Havana, but Mariel’s is the largest. Mariel opened its container terminal in 2014, and two-thirds of the $900 million project was financed by Brazil.

Mariel is planning its transformation into a major transshipment hub, and becoming the first port of call for “neo-Panamax,” the newer, larger container ships going through the Panama Canal to the U.S. according to published reports.

Some of the joint initiatives planned include marketing, market studies, modernization and improvements and training. Many other things have to occur before trade can begin. Any and all shipping lines expecting to establish service to Cuba must first meet and obtain the license from the Office of Foreign Asset Control, Department of U.S. Treasury.

“Once that license is obtained, then the company will need a license to operate in Cuba. One of the benefits of having an agreement is so that the port can direct businesses to the appropriate transportation ministers in Cuba,” Almira said.

A Cleveland-based owner and manager of medical office buildings bought one in Boynton Beach for $14.8 million.

Woodside Health bought the 50,000-square-foot Boynton Beach Medical Center. Bob Mion and John DePersio, agents of Coldwell Banker Commercial NRT, helped to close the deal, which closed at $296 per square foot.

The building at 10151 Enterprise Circle Boulevard in suburban Boynton Beach last sold in 2007 for $10 million, or $200 per square foot. The Palm Beach Post also reported that Barclays Bank made an $11.5 million mortgage loan to Woodside Health.’

 

Source: The Real Deal

cash

Michael Rauch, Senior Managing Partner with CRE Florida Partners and Rauch | Robertson & Co., recently negotiated the sale of an industrial property located at 741 NE 42ndStreet in Oakland Park.

The property, which sold for $1,440,000, or $96 per square foot, is a free-standing industrial building with a 1-acre adjacent outside storage yard. The building features 22’ clear ceiling height and several grade level overhead doors.

“This acquisition represents the ‘up-leg’ purchase of an IRC1031 tax free exchange,” explained Rauch. “We are very pleased to have successfully represented this buyer in both the ‘down-leg’ sale and ‘up-leg’ purchase phases of this tax free exchange.”

Rauch represented the buyer in the transaction.

 

 

 

 

Palm Beach County has been a party for developers during the past couple years. Comprehensive plan changes, zoning changes, they’ve won steady approval from county commissioners.

But November’s elections brought two new commissioners to the dais. The mayor’s gavel has been passed to a different commissioner. And early indications are that the music has stopped. The party might not be over – lots of approved projects have not yet been built – but the cover charge appears to be on the rise.

That’s rare and welcome news for environmentalists and preservationists, who have spent much of the past two years wailing in vain that the county was growing too much and in the wrong areas.

“It seemed to me that everything automatically passed,” said Drew Martin, conservation chair of the Loxahatchee group of the Sierra Club.

The list of agreed-to, pro-development requests has grown over the past two years.

Minto

In 2014, Minto Communities wanted land use changes to accommodate a massive project: 4,500 homes and the development of 2.1 million square feet of non-residential space in The Acreage.

After months of packed meetings, protests and complaints from environmentalists and preservationists, the commission voted 5-2 in favor of the request.

The county and Minto agreed to several conditions of approval dealing with such things as land set-asides for drainage, schools and parks. Minto, however, flipped the script on the county, backing the area’s incorporation as the new city of Westlake in a move that bewildered and angered commissioners.

It is unclear whether Minto must adhere to the conditions it negotiated with the county.

The Agricultural Reserve

Last fall, some land owners in the Agricultural Reserve, a 22,000-acre farming zone west of Boynton Beach and Delray Beach, wanted the county to lift restrictions limiting the type of parcels that could be used for preservation.

The county requires that 60 acres be set aside for every 40 that’s developed in the reserve. But if the parcel a developer wanted to use to meet that preservation requirement was smaller than 150 acres, it had to be contiguous to another parcel already in preservation.

The goal was to allow for some development in the reserve while at the same time preserving much of it for agriculture.

But smaller landowners complained that the rules unfairly depressed the value of their land, forcing them to remain in unprofitable nursery or farming operations.

Those landowners pressed commissioners to scrap the so-called contiguity rule, and, with a vote of 5-2, that’s just what they did.

Indian Trails Grove

In September, GL Homes asked the county to change its comprehensive plan to accommodate a project including 3,900 homes and the development of 350,000 acres of non-residential space on 4,900 acres west of 180th Ave. N. and south of Hamlin Road.

Environmentalists and preservationists made familiar arguments — too much development, too much stress on roads. The commission voted 6-1 to grant GL Homes’ request.

Iota Carol (AKA Delray Linton Groves)

An affiliate of a Newport Beach, Calif. investment firm asked the county to change its comprehensive plan to accommodate a project including 1,030 homes on 1,288 acres west of The Acreage.

Again, environmentalists and preservationists asked commissioners to deny the request, and commissioners again refused.

Zoning changes for the Indian Trails Grove and Delray Linton Groves projects are expected to come before the commission this year.

 

That commission is different from the one that approved development requests over the past couple years.

Shelley Vana and Priscilla Taylor, consistent votes in favor of development projects, have been replaced on the commission by Dave Kerner and Mack Bernard.

And the mayor’s gavel has been passed from Mary Lou Berger, who has also favored development projects, to Paulette Burdick, who has been the commission’s most persistent critic of them.

The changes have had an immediate impact.

In December, the county debated whether it should agree to sell 571 acres in the Agricultural Reserve it owns jointly with the South Florida Water Management District.

The 571 acres are part of a larger tract the county purchased in 2000 using public money raised to acquire land for preservation or agriculture. Two years later, the water management district purchased a 61 percent stake in the 571 acres with plans to use it as the site of a reservoir.

The district no longer plans to have a reservoir built there and wants to sell the land. Because the land is jointly owned, the county would have to agree to the sale.

Environmentalists and preservationists said the sale could one day lead to more development in the reserve.

A majority of the commission — Burdick, Melissa McKinlay and the two new commissioners, Kerner and Bernard — said they weren’t prepared to vote in favor of a sale.

The commission eventually voted to conduct a joint meeting with the district’s board of governors to see if it’s possible to head off possible legal action over the land.

“They are showing they are being more moderate,” said Karen Marcus, a former commissioner. “These folks are more skeptical of projects.”

Burdick, denied the gavel in a rebuke two years ago, now has broad authority to set the terms of debate. As chairwoman of commission meetings, she can decide not to accept a motion and extend or restrict the time allotted to speakers.

In addition to zoning requests on big projects, commissioners this year are expected to conduct a workshop on the county’s workforce housing program, set up to require developers to include lower-cost housing in their projects.

Developers don’t like the requirement and have frequently exercised their right to pay a fee in lieu of building the less expensive housing. Burdick has argued that the buy-out costs should be scrapped or raised so the county gets more money to help provide affordable housing or developers are more inclined to build it.

When the program was discussed in the past, Burdick’s frustration with the buy outs would induce eye rolls from colleagues who argued that developers were merely exercising their rights under the program.

The new commission, however, has chosen her as mayor.

“That they selected Commissioner Burdick to be the mayor, that was thoughtful,” Marcus said.

Burdick said she does not believe she alone can make the commission more wary of development projects.

“I’m only one voice,” she said. “I am hopeful that my new colleagues will look at the economic impacts of some of these new projects.”

That some projects have already moved forward through comprehensive plan changes does not mean zoning changes will follow, Burdick said, adding that she does not believe the rejection of zoning requests will automatically prompt lawsuits from developers.

“We’re not taking away any of their current entitlements,” Burdick said.

 

Source:  Palm Beach Post

A new marine industry foreign trade zone has gotten the green light to take off in Fort Lauderdale.

Trade group Marine Industry Association of South Florida said this week it’s won approval from the Foreign Trade Zone (FTZ) Board and Fort Lauderdale’s FTZ No. 241, to create a 16-site foreign trade subzone.

“This is a first of its kind in the United States,” said Phil Purcell, MIASF executive director, in a statement. “Fort Lauderdale is already known as the yachting capital of the world and will now be known for introducing the first FTZ subzone dedicated to the recreational boating industry.”

FTZ restricted-access sites are shielded from the immediate imposition of duties by U.S. Customs, and are empowered to defer, reduce, or eliminate them on foreign products.

“The 16 businesses that will be included in the subzone operate as either a commercial marina, marine parts and components business or a yacht repair facility,” MIASF spokeswoman Kelly Skidmore said.

“Now that the initial filing for FTZ status has been approved, we are excited to begin working with each marina or marine distributor site to activate in compliance with U.S. Customs and Border Protection regulations,” said Gary Goldfarb, chief strategy officer of Interport Logistics of Miami, an FTZ operator and advisor. “There are so many more options for the industry under a FTZ and, as a result, we expect this will be a very active sector for jobs for years to come.”

Others agree.

“Strengthening our marine industry by creating an environment that will encourage more business is the key reason to pursue Foreign Trade Zone activity,” said Karen Reese, administrator for the city’s FTZ No. 241, based at the Fort Lauderdale Executive Airport.

“Providing economic incentives through our Foreign Trade Zone program will enable marine industry businesses to free up important resources that can be used to expand operations, increase revenue, and create additional jobs and career opportunities for our community, while also serving as a valuable tool for future business attraction and retention,” Fort Lauderdale Mayor Jack Seiler said.

 

Source: SunSentinel

Following a year marked by a contentious presidential election and likely changes to come in U.S. policy prescriptions, law firm leaders in Florida are largely optimistic about their firms going into 2017 and expect to see growth in Miami, according to a recent survey of firm leaders and administrators in the region.

“We’re more optimistic today in light of the election,” said Holland & Knight managing partner Steven Sonberg, discussing his personal outlook on the year to come. “The economy was in pretty good shape, and it seems clear with Donald Trump as president, he intends to add fuel to the economy.”

Sonberg isn’t the only firm leader in Florida looking forward to the coming year, according to ALM Intelligence’s Law Firm Leaders survey, which collected responses from administrators and leaders from 56 law firms in the Miami region. The survey was completed in September and October, before Trump’s victory.

In the survey, 29 percent of respondents said they were very optimistic about their firm’s prospects in 2017, while another 64 percent said they were somewhat optimistic. Seven percent said they were uncertain about the coming year, while no firm leaders said they were pessimistic about 2017. The survey also showed that 69 percent of firm leaders in Florida expect deal flow in 2017 to increase moderately over 2016, with another 8 percent expecting a significant increase. While no firm leaders expected deal flow to decrease, 23 percent said that they anticipated flat growth.

The greatest percentage of respondents, 46 percent, said they would expect to see corporate work provide the most revenue growth next year, with litigation as the second most popular response, at 23 percent. Fifteen percent said that they expect to see the most growth in real estate, while 8 percent selected bankruptcy and intellectual property.

Meanwhile, 62 percent of respondents said that they expected bankruptcy and restructuring to be the most financially challenging practice area in 2017. Litigation was named as the most potentially challenging by 31 percent of firm leaders, and another 8 percent pointed to real estate as an expected challenge. A large majority, 80 percent, of respondents said they expected their firms’ billing rates to increase by 5 percent or less in 2017, with the other 20 percent saying they plan to keep their rates at 2016 levels.

Firm leaders were also generally bullish on their firms’ financial outlook for 2017 in terms of the amount of profits taken home by partners. While 20 percent of respondents said they would expect profits-per-partner to decrease, the remainder said they anticipated increases—50 percent said they expect partner profits to grow by 5 percent or less, while 30 percent expected growth of more than 5 percent.

National Comparison

For the most part, the outlook among firm leaders in the Miami regional market closely tracks those of firm leaders in a nationwide survey also conducted by ALM Intelligence. But there were some differences in few key areas—including firm leaders’ optimism about their own firm’s prospects, the likelihood of an increase in deal flow and revenue growth from corporate work in 2017.

Compared to a nationwide survey, which included responses from 103 law firm leaders, a higher percentage of firm leaders in Florida were very optimistic about their own firm’s prospects in the coming year, and a greater percentage of those in the Miami region were more likely to expect increased deal flow and revenue growth from corporate work.

Discussing the results of the nationwide survey with DBR affiliate The American Lawyer, legal consultant Kent Zimmermann of the Zeughauser Group suggested that a change in presidential administration may have some impact on the mix of practice areas providing the most revenue growth for firms. Both the nationwide and regional surveys were conducted in September and October, before the election.

As specific examples, Zimmermann noted that, depending on the policy choices of President-elect Donald Trump, law firms could see more international trade, regulatory and tax work.

“Generally, change in Washington has historically been good for law firms,” Zimmermann told The American Lawyer, “but this particular change will be a mixed bag for law firms, and there will be ups and downs.”

Nationwide, 32 percent of firm leaders said they expected to see the most revenue growth from corporate work, while 27 percent pointed to litigation as the most likely revenue growth driver in 2017. In the Miami region, by contrast, 46 percent of firm leaders selected corporate work as the area that would see the most revenue growth, while only 23 percent said they expected litigation to see the most growth in 2017.

Holland & Knight operations and finance partner Douglas Wright also described likely policy changes in a Trump administration as an opportunity for more legal work in certain areas—the president-elect has, for instance, promised to focus on infrastructure projects and has expressed an interest in overhauling the U.S. tax code.

“I think it’s likely that the tax code is overhauled,” said Wright. “And that really hasn’t happened since 1986, so I think those changes … will require businesses and individuals to reevaluate their structure and business planning.”

Firm Expansion

The nationwide and regional outlook on real estate practices also had some slight differences—10 percent of firm leaders in the national survey said they would expect to see the most growth in their real estate practices; in the Miami regional results, 15 percent of firm leaders said they expect real estate to be the practice with the most growth next year.

Sonberg expects his firm’s real estate work to continue at a high level. That’s especially true in Florida, he said, where real estate developers are remaking the landscape around Miami by eyeing potential projects in Broward and Palm Beach counties. He and his colleague, Wright, also noted an ambitious plan by Tampa Bay Lightning owner Jeff Vinik to develop an area in downtown Tampa.

GrayRobinson President Mayanne Downs had a similar take, saying that in light of increased real estate development, she’s seen a high demand for legal work in the realms of land use, permitting, planning and zoning. She also noted she’s starting to see an uptick in construction-related litigation that’s followed some of the real estate development in the state in the recent past.

“Real estate transactions are up,” Downs said, “and with that, all the stuff that goes with it.”

Law firms themselves have their own real estate and expansion plans. Downs noted GrayRobinson has a relatively new office location in Miami after relocating in 2015 to the downtown Wells Fargo Center. And Sonberg said Holland & Knight plans to add a sixth floor to its lease in the South Florida hub city.

Those developments appear to align with the survey results—83 percent of firm leaders in Florida said they expect to add lateral partners in Miami next year. The next most popular responses were New York, where 33 percent of firm leaders said they expect to hire laterals, and in Los Angeles and Chicago, where 17 percent said they expect to add to their partner ranks.

Overall, 72 percent of survey respondents said they would expect in 2017 to increase their firms’ total head count by 1 to 5 percent, while 14 percent anticipated more growth of 6 to10 percent. The remaining 14 percent of firm leaders said they expected to keep their lawyer head count the same in 2017 as it was in 2016.

Downs, for her part, said she’s focusing on hiring in Miami, but she also stressed that she’s engaged in a lot of recruiting throughout many of GrayRobinson‘s offices in Florida.

“Miami is buzzing. … It’s almost as if there’s an electric hum in the air,” she said. “So Miami for sure. But I really am seeing the excitement around the state.”

Source: DBR

A team of developers have proposed a ground lease at Port Everglades for the construction of a logistics warehouse.

Port Everglades International Logistics Center LLC could build a warehouse of about 250,000 square feet with an attached office building on a 16.7-acre site west of McIntosh Road. The developer is a joint venture between International Warehouse Services (IWS), and ANF Group and Treadwell Franklin Infrastructure Capital.

Port Everglades has handled more than 1 million TEUs (20-foot equivalent units) for two consecutive years, although volume declined 2 percent for the fiscal year ended Sept. 30, 2016. Still, it handled more containers than any port in Florida. The port is pursuing expansion plans, including dredging to deepen and widen its shipping channels and the lengthening of a turn-around area to permit five new cargo berths.

All of that should lead to more demand for cargo warehousing at Port Everglades. IWS is already the largest tenant in the port’s foreign trade zone (FTZ). The developer submitted an unsolicited proposal to Broward County in May. On Nov. 29, the county commission will vote on whether to bypass a process to consider other offers and set up public hearings on Dec. 13 and Jan. 10 to discuss the deal.

The site development costs are estimated at $2.5 million. Under the deal, the developer must build an office for the FTZ operator at no cost to the county over the duration of the lease. The facility would also have some refrigerated warehousing.

Port Everglades International Logistics Center has proposed a 30-year ground lease with the option for a 20-year extension. It would pay the county $22.96 million in total over the 30 years, but the county would pay the developer $3 million once it receives a temporary certificate of occupancy (TCO) for the building.

The developer’s lease payments to the county would start as soon as it secures the TCO. The payment in both years one and two would be $108,836, increase to $217,674 in years three and four, increase to $435,348 in year five and then reach $580,103 in year six. From there, the lease rate would grow 3.25 percent per year.

Construction of the building is estimated to take 27 months, with completion in April 2019. Once the new warehouse is complete, the county plans to demolish the old FTZ warehouse and replace it with additional marine terminal yards, according to a county memo.

 

Source: SFBJ

Michael Rauch and Tom Robertson, Senior Managing Partners with CRE Florida Partners, represented the owner, The General Electric Company (GE), in the sale of a laboratory/ manufacturing building located in Newport Center at 1121 W Newport Center Drive in Deerfield Beach.

The property sold for $3,000,000, equating to $128 per square foot on a 7% capitalization rate.

The 23,360-square-foot asset has been owned and operated by GE since 1998, when it developed the proprietary processes for manufacturing synthetic diamonds.

The tenant, Sandvik Inc., is a world leader in the development and production of synthetic diamond and cubic boron nitride products for industrial applications such as cutting, machining, oil and gas drilling, grinding, rock drilling and wire drawing. Sandvik is a publically-traded International company with over 47,000 employees worldwide.

Tom Robertson

Tom Robertson

“This is the third asset in South Florida that we have exclusively represented for GE,” commented Robertson. “Inventory is low and CRE Florida Partners is currently working with several buyers looking for similar properties in Broward and Palm Beach counties.”

 

Michael Rauch

Michael Rauch

“Identifying quality industrial/distribution investment properties in South Florida continues to be a challenge and we are continuously sourcing these properties for our clients,” added Rauch.

Tom Robertson & MIchael Rauch

Tom Robertson & MIchael Rauch

Tom Robertson and Michael Rauch, Senior Managing Partners with CRE Florida Partners, negotiated the sale of two industrial properties for a total of $2.6 million.

Robertson and Rauch represented the seller, 1311 NW 65th Place LLC, in the sale of an industrial property located at 1311-1309 NW 65th Place in Ft. Lauderdale. Built in 1982 on 1.01 acres, JMG 1994 LLC purchased the ±20,146-square-foot building for $2,000,000, or $100.00 per square foot. The building features heavy power and an AC warehouse with 4 dock high loading doors.

1101 S. Dixie Highway, Pompano Beach

1101 S. Dixie Highway, Pompano Beach

In a separate transaction, Michael Rauch represented the buyer and seller in the sale of an industrial property located at 1101 S. Dixie Highway in Pompano Beach. The buyer, Noebell Holdings, LLC, a fresh seafood distribution company, purchased the ±6,406 square-foot building for $600,000, or $93.66 per square foot, and has occupied the facility. The seller owned the property for over 10 years as an investment.

“Industrial distribution facilities are becoming harder to source and match our buyer’s needs to find available user/owner or investment industrial properties due to a shrinking inventory in South Florida’s market,” Robertson commented.

CRE Florida Partners is currently working with several buyers looking for 20,000 – 40,000 SF industrial buildings in Broward and Palm Beach County.

Michael Rauch

Michael Rauch

Michael Rauch, President and Managing Partner of CRE Florida Partners recently completed the sale of two freestanding office properties in Dania Beach. Both office properties located at 3201 Griffin Road.

Rauch originally sold the property to the ownership of Gulfstream International Airlines in 2005, which was used by the airline until 2010 as the company’s corporate headquarters. Gulfstream was sold in 2010 to Silver Airways. The owner of Gulfstream retained the buildings. Rauch was retained in 2012 to lease and stabilize the property for sale.

3201 Griffin Road-Dania Beach 2The asset was purchased by Miami-Dade investment group Salomon Investment Inc. as part of an IRC1031 exchange. Salomon purchased the ±30,379 SF office property for $3,120,000 or ±$103 per square foot on a ±6.5% capitalization rate. At the time of sale, the property was approximately 93% occupied.

“The sale of the Gulfstream International Airlines property represents the conclusion of several years of asset-repositioning for an investment sale,” commented Rauch. “The sales price also reflects a slow trend in strengthening office values in South Florida, which is badly needed and long overdue,” he added.

The deal closed March 31.  The buyer represented itself in the transaction.