PriceSmart, a publicly traded warehouse chain and operator of membership warehouse clubs, has outgrown its space so much so that it’s building a new facility at Flagler Station.
The company, which is the largest operator of such clubs in Central America and the Caribbean, currently operates in 360,000 square feet at Flagler Station II. Now, it contracted Flagler for 330,000 square feet in a new facility at Flagler Station III, and will keep 100,000 square feet at Flagler Station II for refrigerated and frozen space. It will then sublease the remaining 260,000 square feet, a spokesperson told The Real Deal.
The sublease, asking $8.25 per square foot, would run until at least 2021.
Transwestern Senior Managing Directors Ben Eisenberg and Walter Byrd, Senior Vice President Thomas Kresse and Senior Associate Carlos Gaviria represented the tenant for the new building, and the commercial brokerage was also hired to sublease the space on behalf of PriceSmart. Flagler was represented in-house by Dan Marcus, executive vice president of real estate development, and Chris Sutton, vice president of development, according to a press release.
Flagler Global Logistics, part of Florida East Coast Industries, is the developer behind Flagler Station, the three-phase industrial park at 10800 Northwest 100th Street in Medley. The last phase will be the Class A distribution center with a planned delivery date of the second quarter of next year. Freight company Gap Forwarding also leased space at Flagler Station III.
Transwestern declined to disclose lease rates for the new space.
The Medley submarket has about 550,000 square feet of available space with a 3.6 percent vacancy rate, according to the release.
An earlier version of this story incorrectly stated that PriceSmart signed a lease for the 330,000 square feet at the new facility. It contracted Flagler to build the new space.