Longpoint Realty Cashes In: $70M Warehouse Deal Shakes South Florida!

North Miami, USA - The South Florida property market continues to bustle with activity, as evidenced by Longpoint Realty Partners’ recent sale of a warehouse portfolio. Selling for a substantial $69.9 million, the buyer, MIG Real Estate, tapped into the growing demand for industrial properties, signalling a healthy appetite for real estate investment in the region.

Located in Broward County, the portfolio comprised three industrial properties sold at a remarkable profit for Longpoint, achieving a 68% gain overall. MIG, based in Newport Beach, California, secured the deal with a $69 million mortgage from Bank of America, clearly demonstrating their confidence in the South Florida market, which is attracting more out-of-state investors.

A Closer Look at the Transactions

Specifics of the properties reveal the depth of the investment. MIG made its largest purchase at the five-building Interstate Commerce Center in Davie for $29 million, an area measuring 124,000 square feet across eight acres. This complex was previously acquired by Longpoint in 2019 for $15 million, clearly showcasing the substantial appreciation in value over a few years. The next significant investment was the Courtyard Distribution Center in Sunrise, which fetched $27 million for a total of 102,000 square feet. Longpoint had acquired it just two years earlier for $16 million.

Additionally, the two buildings at the Fort Lauderdale Commerce Center sold for $13 million, having been purchased by Longpoint for $10.5 million only last year. Overall, MIG’s ensemble of acquisitions totals around 124,000 square feet. The price per square foot came to approximately $254, a testament to the rising industrial property prices in the area, which have been driven by heightened demand.

Market Trends and Insights

This development aligns with broader trends noted in South Florida’s real estate landscape. According to Newmark, the region’s industrial market reported an impressive average asking rent of $13.21 per square foot, coupled with a low vacancy rate of just 3.7%. Such figures highlight the soaring need for industrial space, which is reflective of similar national market trends.

Broward County does have some challenges, as noted in Newmark’s report for Q1 2023, showing negative absorption rates in the area. However, Miami-Dade County led the charge with substantial growth, driving positive net absorption of 430,484 square feet. Industrial space is being sought at an accelerated pace across South Florida, contributing to a dynamic and shifting real estate market.

The sale by Longpoint is also indicative of a more extensive strategy occurring regionally, with other companies following suit. For instance, The Real Deal reports that this transaction was about $19 million more than a previous sale and reflects the appeal of the area to institutional investors. Such insights paint a picture of flourishing investment opportunities and interest in a market that continues to evolve.

As the landscape becomes increasingly competitive, both developers and investors are gearing up for the next big thing. The recent activity, including MIG’s significant portfolio acquisition, further solidifies South Florida’s reputation as a hotspot for lucrative real estate ventures.