Partnership pays $9M for West Palm warehouse portfolio
Properties were last purchased at auction five months ago
November 16, 2015 03:45PM
A portion of the industrial portfolio that just sold for $60 per square foot
A joint venture between two investment groups just announced its all-cash acquisition of a $9 million portfolio of industrial buildings near the Palm Beach International Airport.
The portfolio includes 11 buildings in the industrial park at 1700 and 1560 Latham Road, which is less than a mile from I-95 and three miles from the airport. Taillard Capital, an investment company based in Hollywood, and YS Investments, headed by Yaniv Sananes, were the buyers.
Together the buildings house roughly 150,000 square feet of small bay warehouses, storage and flexible space, according to a news release about the acquisition. The venture’s purchase price breaks down to exactly $60 per square foot.
An outlined aerial view of the 11 buildings that were acquired
“The plan is to rehab the property and bring it back to life,” Mickey Taillard, CEO of Taillard Capital, said in the release. He said the venture is banking on the county’s blooming development market, which will need storage space to support its projects.
The portfolio fell into trouble last year when its owners were hit by a $10.1 million foreclosure lawsuit originated by U.S. Bank, which was representing a commercial mortgage-backed securities trust. Okeechobee #1 LLC, headed by Peter Applefield and Brian Waxman, lost the judgment in April of this year and the buildings headed to auction, according to Palm Beach County property records.
The winning bid was made by a Delaware company titled ECO SBC 2015-1 REO 127617 LLC, which is managed by the South Florida law firm Arnstein & Lehr.
Sananes, a managing partner in the venture, said the two investment groups plan to grow their industrial holdings in West Palm Beach by 500,000 square feet within the next 12 months — and another 500,000 within two years. — Sean Stewart-Muniz
Source: The Real Deal