IDI Purchases 42 Acres For $20.6 Million

Reese Stigliano represented Atlanta-based Industrial Development International (IDI) in its $20.6 million acquisition of 42 acres of industrial land in Davie, Florida. The sale closed May 30th. The Seller was Silver Oaks Land Owner.

The 42-acre site is located in the I-595 Commerce Center, a former mobile home park. The mobile home park was closed and the land was rezoned to a Regional Activity Center in 2008 just as the commercial real estate market was coming to a standstill.

According to Stigliano, “IDI looked at the site in 2009, but with the economy in shambles, and the asking price posted at $40 million, they decided to pass.”

As the economy began to stabilize and sale of Class A industrial buildings began to command cap rates in the low 6% range, IDI renewed its interest in the site.

IDI, one of the largest industrial real estate developers in North America, beat out several others bidders because of their previous knowledge of the park and its familiarity with the owners. However, the key to their successful bid was a commitment to an aggressive closing schedule. IDI agreed close on the transaction in 120 days which, for a major development like this, could easily take 12 months.

IDI is planning to build approximately 700,000 square feet of Class A warehouse distribution buildings. Construction should begin in late summer. At $11.60 per square foot for the land, this purchase is one of the most expensive and largest industrial land sales in Broward County.

Pat Montalbano and Lloyd Berger participated in the transaction with Mr. Stigliano.