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The Offering
Cushman & Wakefield of Florida, Inc., in partnership with CBRE,
has been retained as the exclusive agent for the sale of the West
Palm Small Bay Portfolio (the “Portfolio” or “Properties”). This
offering includes three separate small-bay industrial properties
comprising a total of 95,720 square feet strategically located
within a .4 mile radius of one another. The Portfolio offers the
opportunity to amass immediate operational scale in one of the
top and most infill industrial markets in the United States.
The Portfolio, which is currently 99% occupied, is comprised of
seven buildings on three separate parcels. Each Property within
the Portfolio offers a diverse unit mix and can accommodate
tenants ranging from 400 to 4,800 Square Feet. The West Palm
Small Bay Portfolio straddles Military Trail a major north/south
thoroughfare serving Palm Beach County. With access points
to Interstate 95 via Blue Heron Boulevard to the north and 45th
Street to the south, the Portfolio’s location provides its tenants
superior mobility to the surrounding area.
Palm Beach County’s industrial market is extraordinarily land
constrained with significant and increasing tenant demand
driving strong rental rate growth. On aggregate Palm Beach’s
industrial market continues to be among the strongest in the
entire country, as evidenced by the 4.2% vacancy rate across all
industrial product types at year-end 2016.
Steadily increasing
land values and construction costs, coupled with limited small-
bay inventory and entitled land have created significant barriers
to new development, providing an opportunity to purchase the
West Palm Small Bay Portfolio drastically below replacement
cost.
Investment Highlights
• SUPERIOR LOCATION
Central, convenient location with near immediate access to
Interstate-95, the Florida Turnpike and the Bee Line Highway
• PROVEN RENT GROWTH
Current owner has increased rents 35% since 2015 while also
attracting higher quality tenants
• STABLE CASH FLOWS
At 99% occupancy with low rollover in the first three years,
the Portfolio offers a secure staggered income stream
• DIVERSE TENANT BASE
Diversified group of tenants representing both operating
industries as well as warehousing and distribution
• HIGH BARRIERS TO ENTRY
Extraordinary tight land conditions make new development
very expensive, driving industrial rents as demand continues
unabated
• STRONG INDUSTRIAL MARKET FUNDAMENTALS
Staggeringly low 4.2% vacancy rate in 2016 for the
Warehouse/Distribution sector in Palm Beach County