Wednesday, March 15, 2023 / by Dave Magua
TPA pays $36M for Industrial Dev Site in Palm Beach County
TPA Group bought an industrial development site west of Loxahatchee Groves for $36 million.
The Atlanta-based firm bought nearly 60 acres of land at 20305 State Road 80, in an unincorporated area of west Palm Beach County, from an affiliate of mining company Palm Beach Aggregates, according to records and real estate database Vizzda. TPA took out a $10 million loan from the seller.
The purchase breaks down to nearly $603,000 per acre.
TPA also has the right of first refusal to purchase another 37 acres nearby, according to records.
Palm Beach Aggregates is a mining company that also has interests in waste wood processing and owns land leased for sugar cane growing, its website shows. The firm, based in Palm Beach County and led by Enrique Tomeu, mines aggregate source material that’s used in construction.
In 2019, Palm Beach Aggregates filed an application to the county for an industrial project on 138 acres, including the land that traded. It would have 2.8 million square feet of warehouses and 492,000 square feet of light industrial uses, according to records.
TPA invests in and develops real estate across asset classes, its website shows. It has purchased, developed and sold more than $30 billion worth of real estate, and it has completed more than 275 spec, redevelopment and built-to-suit projects. J. Bradford Smith and Nathan Pramik lead TPA.
The firm’s South Florida investments include a 25-acre mixed-use development in Pembroke Pines, between I-75 and 145th Avenue just south of the Shops at Pembroke Gardens. TPA built a three-story office building on the site, and last year scored approval for a 350-unit apartment complex. TPA plans another office building and a hotel on the assemblage.
South Florida’s industrial market has softened after years of unbridled growth. In Palm Beach County, the industrial vacancy rate increased to 5.1 percent in the fourth quarter, from 4.1 percent, year-over-year, according to a Newmark report. The average asking rent hit $12.66 per square foot, down from $13.07 a foot in the third quarter, but still more than the $10.87 a square foot during the fourth quarter of 2021.
Yet, investors continue to target the market. In November, MG3 Group paid $78 million for the Walgreens Distribution Center at 15998 Walgreens Drive is unincorporated Palm Beach County and west of Jupiter.