Investment interest in industrial properties in South Florida has been on the rise. With the significant increase in online sales during the coronavirus pandemic, retail giants like Amazon.com and others have been on the lookout for industrial distribution space in the region. In Palm Beach County, where space is limited and sold at a premium, warehouse properties can be challenging to obtain. However, one east coast company recently made a major industrial property purchase. Here is more on STAG’s Palm Beach County Industrial Property acquisition.
STAG Industrial in Palm Beach County
STAG Industrial, a Boston-based real estate investment company, recently procured multiple industrial properties in Palm Beach County, paying $31.75 million total. According to reports, the seller is an affiliate of Eastern Metal Supply, an aluminum products supplier based in Lake Worth Beach. In sum, the newly-acquired real estate covers include four warehouses totaling almost 150,000 square feet.
STAG’s Palm Beach County holdings cover approximately 20 acres and include:
- Three properties in Lake Worth Beach located at 2230 and 2269 North Fourth Avenue and 3600 23rd Avenue South, and
- One property in Rivera Beach located at 4268 Westroads Drive.
2230 Fourth Avenue
STAG paid $4.75 million for a property at 2230 Fourth Avenue in Lake Worth Beach. The structure is a 40,000-square-foot warehouse that was built in 2016 on 3.3 acres. Eastern Metal acquired the land in 2005 for $815,000. The warehouse currently houses Eastern Metal’s Tigress Outriggers and Gear business.
3600 23rd Avenue and 2269 Fourth Avenue North
STAG reportedly paid $15.25 million for a 68,000-square-foot warehouse on 3.3 acres located at 3600 23rd Avenue and 2269 Fourth Avenue North, which sits on 4.9 acres. Both warehouses were built in 1986.
4268 Westroads Drive
The company paid $1.75 million for the Riviera Beach property at 4268 Westroads Drive. This acquisition included a 40,000-square-foot warehouse built on 6 acres in the 1970s. According to records, Eastern Metal bought the warehouse in 2000 for $4.7 million.
According to its website, “STAG Industrial, Inc. is a real estate investment trust focused on the acquisition, ownership, and operation of single-tenant, industrial properties throughout the United States. As of September 30, 2020, the Company’s portfolio consists of 462 buildings in 38 states with approximately 92.3 million rentable square feet.”
Recent Palm Beach County Industrial Real Estate Activity
Last year Dalfen Industrial acquired multiple industrial logistics centers in West Palm Beach. Additionally, according to a recent report, the company recently paid $18.35 million for a Riviera Beach warehouse leased to FedEx. In related news, last year, the Easton Group sold an industrial warehouse in Royal Palm Beach for $15.5 million to Boston-based Cabot Properties.
It was also recently reported that Kushner Companies is seeking county approval to build a one-million-square-foot, “Amazon-type distribution facility just west of the turnpike in unincorporated Delray Beach off West Atlantic Avenue.” If permission to build is granted, this project would be the largest of its kind in the Agricultural Reserve.
In October 2020, Amazon opened a delivery warehouse west of West Palm Beach. The online retailer is also building a one-million-square-foot fulfillment center west of Jupiter.
Contact a Florida Board-Certified Real Estate Attorney
At Rabideau Klein, David E. Klein, Esq. and Guy Rabideau, Esq. are dedicated, Palm Beach County Florida Bar Board-Certified Real Estate Attorneys with extensive experience assisting clients with multi-million-dollar property transactions. We have the expertise and knowledge you need to ensure that your property interests are protected in Palm Beach County and the Town of Palm Beach. Contact Rabideau Klein today to discuss your real estate legal needs.