FORT LAUDERDALE, FL—Short sales are still working through the commercial real estate system—and industrial properties are no exception. Frenzel Enterprises just disposed of a 23,911-square-foot industrial flex building on a short sale.

CBRE arranged the sale of the industrial asset on behalf of Frenzel, which owned and occupied the building. Powerline Road LLC acquired the discounted property for use by a marble and granite sales and distribution company.

“The building received minimal interest for about one year despite a great location, quality construction and exposure,” Harry Tangalakis, senior vice president with CBRE, tells GlobeSt.com. “Suddenly, we had interest from several vendors of marble and granite. We later learned the neighboring site has leased to a company in the same industry. We could be seeing the beginning of the new epicenter for marble and tile distributors in Broward County.”

Located at 5301 North Powerline Rd., just north of Commercial Boulevard, the property is located in Fort Lauderdale’s Gateway area. Tangalakis says the sale represents a step toward changing dynamics in the market.

“Support and participation from the lender facilitated the short sale,” he explains. “It's also one of few buildings to have traded in the past three years in the Gateway area.

CBRE senior associate Tom O’Loughlin and associate Larry Genet worked with Tangalakis to market the property for sale and negotiating the transaction on behalf of the seller. The buyer was also represented by CBRE sales professionals in South Florida.

“The biggest challenge was the dynamics of working with a lender in order to close the short sale,” Tangalakis says. “As a broker, it's a continuous effort to keep the lender or servicer focused on the sale. As buyer, you can’t expect a counter offer. The first offer has to be the best offer.”