Dalfen Industrial lightened its load in Palm Beach County by selling one of its warehouse facilities for $55 million.
An affiliate of Irvine, California-based LBA Logistics bought Interstate Park Logistics Center at 3774 Interstate Park Road North in Riviera Beach, records and real estate database Vizzda show. The deal breaks down to $232 per square foot for the 236,554-square-foot warehouse completed in 1996.
The 14.3-acre property is fully leased to Serta Simmons Bedding, an online listing shows.
The seller, Dallas-based Dalfen paid $25.3 million for the facility in 2020, records show.
Dalfen, led by CEO Sean Dalfen, also owns another 152,000-square-foot warehouse in Riviera Beach, as well as a 133,000-square-foot facility in West Palm Beach and a 295,000-square-foot complex in Boynton Beach, according to the firm’s website. Dalfen also owns two industrial sites in Miami-Dade County. The company has more than 55 million square feet of industrial space worth more than $4.5 billion under management, Dalfen’s website states.
Other institutional investors have beefed up industrial portfolios in South Florida recently. Pompano Beach is attracting heavy attention. Last month, Dallas-based Invesco paid $23.8 million for two facilities spanning nearly 105,000 square feet in Pompano Beach.
Around that same time, Blackstone subsidiary Link Logistics scooped up a 93,873-square-foot warehouse in Pompano Beach for $20.7 million.
Also last month, East Capital Partners doubled its industrial portfolio near Medley in Miami-Dade County. The Darien, Connecticut-based firm acquired an industrial complex spanning 85,138 square feet and a storage yard for $17.5 million. In January, East Capital and Baltimore, Maryland-based ABR Capital paid $38.6 million for two office buildings and six industrial warehouses in Medley.
Investors are still bullish on logistics and distribution facilities, even though South Florida’s industrial market showed signs of softening in the first quarter, according to a recent CBRE report. In Palm Beach County, the vacancy rate jumped to 3.9 percent in the first quarter, compared to 2.5 percent during the same period of last year. As a result, the average asking rent dropped to $15.88 a square foot in the first quarter, compared to $16.50 a square foot during the same period of last year.
Correction: A previous version of this story incorrectly identified Dalfen Industrial as the buyer