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BOCA RATON, FL-Delaware-based P.S. Business Parks LP has acquired the 397,513-sf Palm Beach Flex Portfolio in Boca Raton and Wellington for $45.8 million, or $115 per sf.

Marcus & Millichap investments sales specialists Douglas Mandel, Benjamin Holzhauer and Adam Tiktin, who are located in the company’s Fort Lauderdale office, represented the buyer and the seller in the transaction. The seller was a Florida-based joint venture of Commerce Park of Palm Beach County, LLC, Commerce Park West LLC, Wellparc II LLC and Boca Commerce Park LLC.

Mandel tells GlobeSt.com that the buyer chose to acquire the property because it was an opportunity to acquire 4000,000 sf of industrial space in an area with limited supply. The property was 98% leased at the time of the sale. “Multi-tenanted industrial product is in very high demand due in large part to the ability to increase rents,” Mandel says. “Most tenants have two- to three-year leases so owners are able to increase rents very rapidly.”The industrial portfolio includes office, showroom, warehouse and self-storage space built in phases between 1985 and 1998. “Continued population growth in this part of Florida will increase demand for flex space in these locations,” Mandel says. “Limited supply of flex industrial product will continue to place upward pressure on rents, improving the long-term performance of this asset.”

According to a Grubb & Ellis Q3 industrial market report, the industrial market in Palm Beach County has been experiencing tight conditions. With 10.4 million sf of R&D/flex space, the county is experiencing a 4.5% vacancy rate with 107,729 sf of positive absorption year-to-date and average asking rents of $7.57 per sf. In the Boca Raton submarket, the vacancy rate of all industrial products is 3.3% with average asking rents of $12.30 per sf for R&D/flex space. Specific data for Wellington was not available.

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