In separate purchases, a Toronto-based multinational real estate investment firm acquired two Boynton Beach warehouses for a combined $15.5 million.
Affiliates of Oxford Properties Group, led by company President Michael Turner, purchased the properties at 6600 and 7700 High Ridge Road for $7.3 million and $8.2 million, respectively.
The sellers are affiliates of New York-based real estate investment firm KKR.
The deal equates to $185 per square foot for a combined 83,378 square feet of industrial space.
In the second quarter, industrial sale prices averaged $122 a square foot in the Palm Beach County market, down $7 compared to the same period in 2020, according to an Avison Young report.
In August, Oxford agreed to pay $2.2 billion for KKR’s 14.5-million-square-foot portfolio of industrial properties in the U.S., most of which are in Sunbelt states. The deal involves 149 buildings, many of which are near population centers and involve properties used by online retailers like Amazon for last mile distribution points.
In December, KKR, led by Henry Kravis, scooped up about 100 properties in Atlanta; Baltimore; Chicago; Central and South Florida; Central Pennsylvania and Dallas. The company paid $835 million for 9.7 million square feet of industrial real estate. The same month, KKR bought the two Boynton Beach warehouses for a combined $13 million. Both buildings were completed in 1996.
In Palm Beach County, industrial properties are still a secure bet for investors, according to Avision Young. In the second quarter, the overall vacancy rate was 5.4 percent, the lowest since 2019, and base rents increased nearly 13 percent compared to the same period last year.
Last month, billionaire developer Jeff Greene sold a recently completed industrial complex at 1501 Meathe Drive in West Palm Beach for $60.6 million.