Coral Springs Logistics Center_Property for Sale

3850-3872 NW 126th Avenue, Coral Springs, FL, 33065, US

Coral Springs Logistics Center

Asset Description

Jones Lang LaSalle Americas, Inc. ("JLL") has been exclusively retained to market for sale Coral Springs Logistics Center (the "Property" or "CSLC") – two newly built, light industrial properties totaling 125K SF in Broward County, FL.

The Property is 100% leased to Exclusive Trim (75% of the NRA) and Marc Refrigeration (25% of the NRA) with 6.7 years of WALT remaining. CSLC offers strong cash flow with an in-place NOI of $1.8M and annual escalations averaging 3.25%. That said, the landlord negotiated a bespoke structure in the largest tenant's lease to capture upside in market rent growth. Currently that lease is 14% below market levels and in 2027, will contractually reset to fair market value ("FMV") mid-term, providing 24% NOI growth over the first 3 years and the potential for a 31% trended mark to market ("MTM") – a rare occurrence for fully leased assets.

Coral Springs Logistics Center benefits from exceptional local and regional connectivity via the adjoining Sawgrass Expressway which connects to major regional interstates like Florida's Turnpike, I-595, I-75 and I-95, providing tri-county last mile logistics capabilities with access to over 6.6M people in a 90-minute drive and the region's most populated MSAs: Miami, Broward County, and Palm Beach County. CSLC also provides national logistics capabilities via top-of-the-line logistics infrastructure such as Ft. Lauderdale-Hollywood International Airport, Port Everglades, Miami International Airport, and Port of Miami.

Coral Springs Logistics Center offers investors the opportunity to acquire two newly built, fully leased Class A industrial properties at a discount to both replacement cost and recent South Florida transactions with strong contractual income growth and limited downside risk within the top performing market within the State of FL.

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Attributes

Number of buildings

Building area net

11,566 m²

Building class

Year built

2021

Clear height

10.36 m

Occupancy

100%

WALT

6.7 years

Media

Investment Highlights

RARE OPPORTUNITY TO ACQUIRE TWO CLASS A, LIGHT INDUSTRIAL ASSETS IN ONE OF THE PREMIER LAND & SUPPLY CONSTRAINED U.S. COASTAL MARKETS

New class A industrial product rarely trades in Broward County where leasing fundamentals are top in the state and even fewer with the income growth profile of CSLC.

ATTRACTIVE VALUE PROPOSITION & ACQUISITION BASIS

Offered at a discount to replacement cost ($320+ PSF) and recent comparable South Florida transactions ($395 PSF), providing a long-term competitive advantage for new ownership.

Broward County’s industrial market presents significant underlying value with average rents surpassing Miami’s as highest in the state, vacancy rates sitting 140 BPS tighter, and recent comparable transactions 14% below Miami’s levels on a PSF basis.

STRONG & STABLE IN-PLACE CASH FLOW

New construction limits near-term capital requirements and landlord responsibilities for new ownership.

Landlord-favorable NNN lease structure with $1.8M of in-place NOI and 3.25% contractual annual escalations.

34% 5-year NOI growth & 70% 10-year NOI growth.

UNIQUE CONTRACTUAL MTM OPPORTUNITY

Lead tenant, Exclusive Trim (75% of the NRA), has a contractual, mid-term FMV reset clause in their lease in less than 2 years providing a 31% MTM opportunity and a 50 BPS increase in annual rent escalations without the associated risk and cost of reletting the space.

STRATEGIC CENTRALIZED SOUTH FLORIDA LOCATION PROVIDES TRI-COUNTY LAST-MILE LOGISTICS CAPABILITIES

The Property is less than 60 minutes from all major South Florida logistics infrastructure including Ft. Lauderdale’s CBD, Downtown Miami, Palm Beach CBD, Ft. Lauderdale-Hollywood International Airport, Miami International Airport, Palm Beach International Airport, Port Everglades, and the Port of Miami via major transportation arteries: Sawgrass Expressway, Florida’s Turnpike, I-595, I-75 and I-95.

Coral Springs Logistics Center’s strategic central location within the region provides for unparalleled last-mile distribution capabilities and provides access to 6.6M people and the entirety of South Florida in under 90 minutes.