FORT LAUDERDALE, FL-EWE Warehouse Investments XXVI recently acquired 1850 NW 49th Street for $6.95 million from Ft. Lauderdale-based AGT Green Building. EWE Warehouse Investments immediately inked a lease with Ft. Lauderdale-based GA Telesis, a commercial aviation and jet engine finance and leasing company.
The Cushman & Wakefield South Florida Industrial Team of Chris Metzger, Rick Etner, Sky Groden, Christopher Thomson and Justin Cope represented the EWE Warehouse Investments in the property purchase. The team also handled lease negotiations with GA Telesis.
“This was an extremely unique deal where we were able to successfully assist two clients with an acquisition of a property at an incredible value that benefited both the investor and the tenant,” says Groden, a senior director at Cushman & Wakefield. “The creativity, diligence and ingenuity of all parties involved were instrumental in this complex transaction being completed.”
Totaling 140,000 square feet and situated on about 13 acres, the facility is located in the upscale Spectrum Office Park in Fort Lauderdale just West of I-95 and south of Commercial Boulevard. The facility offers a second story corporate office area in an institutional quality constructed warehouse/distribution facility.
Tom O’Loughlin, a senior associate at the Industrial Properties group in the Ft. Lauderdale offices of CB Richard Ellis, tells GlobeSt.com the EWE Warehouse deal was likely locked and loaded with GA Telesis as the tenant. As he sees it, few investors would purchase an empty building in today’s market without a tenant in tow.
“The sale price was a great deal,” O’Loughlin says. “Even after the flip, EWE got a very attractive basis on a 25-foot clear building that’s 100% air conditioned with about 30,000 square feet of office space and some extra land on the side. I’m sure EWE was able to offer GA Telesis a long-term lease at $1.50 below market rents with some tenant improvement dollars involved.”
The deal marks another positive step in Ft. Lauderdale’s industrial market recovery. Broward County absorbed 217,000 square feet of industrial space in the third quarter of 2010, according to Colliers International’s Q3 2010 Industrial report, and 780,000 through the first three quarters. The vacancy rate is holding steady at about 9.5% and new construction is ongoing. Broward has seen 69,000 square feet of new construction in 2010.
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