Northmarq, one of commercial real estate’s leading investment sales brokerage firms, has completed the sale of a core, infill industrial outdoor storage (IOS) facility located at 3945 Fiscal Court in West Palm Beach, Florida. The property is fully leased to United Site Services on a triple net basis. Northmarq’s Brandon Duff and Mack Wolfgram brokered the transaction between the seller, an individual investor based in Fort Lauderdale, Florida, and the buyer, a private investment and development company, based in Philadelphia, Pennsylvania. The asset traded for approximately $7.1 million reflecting a 4.07 percent cap rate.
Comprising a 14,000-square-foot concrete building situated on a 3.62-acre site, the property was originally built in 1990 and includes an improved industrial yard, fully paved with lighting and perimeter fencing. These are highly sought-after features among both IOS tenants and real estate investors which, along with the property’s A+ location, further contributes to its exceptional residual value and long-term appreciation potential. Additionally, with direct frontage on Interstate 95, the property is positioned in a heavily trafficked industrial corridor that includes other national IOS tenants such as ABC Supply Company, Herc Rentals, SiteOne Landscape Supply, Builders FirstSource, Allied Trailers, and Enterprise Truck Rental, among numerous other national, regional and local companies. West Palm Beach is one of the nation's most in-demand markets, especially for industrial properties and the IOS property niche.
“This was a unique opportunity among current IOS offerings, given the infill West Palm Beach location, frontage on Interstate 95 and below market rent. Future use options are versatile, and residual value is exceptionally strong,” said Wolfgram, Associate in Northmarq’s Chicago, Illinois office.
“This transaction is part of our team’s ongoing industrial outdoor storage and industrial service facility product specialty focus that we have been executing for several years,” added Duff, Managing Director and Partner. “As both investor and tenant demand for this niche segment continues to grow immensely, we have seen increasing interest and historically low cap rates from all buyer types including institutional, REITs, private equity sponsors, individual private investors and 1031 exchange buyers.”