Bankrupt Energy Drink Company's Warehouse In Pembroke Pines Sells For $60M
An investment fund has paid $59.7M for the Broward County warehouse of an energy drink company that went bankrupt.
Arrowrock US Industrial Fund IV, a fund managed by Summit Real Estate Group focused on multitenant industrial assets in the Southeast, purchased the 224K SF warehouse on 23 acres at 20311 Sheridan St. in Pembroke Pines. The seller was two entities controlled by John Owoc, the former CEO of Bang Energy, called Sheridan Real Estate Investment A and Sheridan Real Estate Investment C.
St. Louis-based Summit is planning upgrades to the building and is actively marketing the property for lease, according to a press release. Summit is planning to build an additional 280K SF building on the site’s 13 developable acres, with construction slated to start in early 2024 and delivery expected in Q4 2024.
Mike Davis, Dominic Montazemi, Rick Brugge, Rick Colon, Greg Miller and Mike Ciadella of Cushman & Wakefield represented the seller. Cushman & Wakefield’s industrial team will handle leasing at the vacant distribution center and the planned spec building.
“With Broward County vacancy rates at historical lows and only 1.3 million square feet of bulk industrial under-construction on the horizon, the sale reflects a unique value-add and development opportunity that garnered broad interest from investors, users, and developers,” Montazemi, executive managing director at Cushman & Wakefield, said in the release.
South Florida’s industrial market continues to show strong rent growth even as leasing activity declines from the heights seen at the peak of the pandemic.
While leasing activity has fallen by more than 50% year-over-year in Broward County, there has been over 1M SF of leasing activity through the first half of the year, according to a quarterly report from Cushman & Wakefield. Industrial rents were up 21.5% year-over-year to $15.03 per SF at the end of the second quarter.
The acquisition adds to a stable of warehouse assets acquired by Arrowrock. The Summit-led fund also owns two industrial assets in South Carolina as well as properties in Georgia, North Carolina and Orlando.
Vital Pharmaceuticals Inc., the maker of Bang Energy, filed for Chapter 11 bankruptcy protection in October after a California jury awarded competitor Monster Beverage Corp. $293M in a lawsuit that alleged Bang falsely advertised the ingredients and health benefits of its drinks. This month, a bankruptcy judge approved Monster’s $362M acquisition of Bang.
