Rockpoint Snaps Up Pompano Beach Industrial Site for $180M
The parcel is part of The Pomp, a 223-acre mixed-use development being led by The Cordish Companies and Caesars Entertainment.
Rockpoint has acquired an 87.8-acre industrial development site in Pompano Beach, Fla., for $180 million, Commercial Observer has learned.
The infill site is part of The Pomp, a 223-acre mixed-use development currently underway with The Cordish Companies and Caesars Entertainment at the helm, and Rockpoint will develop it in partnership with the two developers.
The parcel presented a rare investment opportunity — a large tract of land in the heart of South Florida that’s equidistant to Miami and Palm Beach — and marks a sizable addition to Rockpoint’s expanding footprint in South Florida’s supply-constrained industrial market.
Sources familiar with the transactions said that the transaction— which closed Thursday afternoon —was direct with no brokers involved, and an all-cash deal.
“Rockpoint is pleased to work with Cordish and Caesars in transforming this strategically situated multi-hundred-acre site as part of the master plan,” Tom Gilbane, managing member at Rockpoint, said in a release. “This investment provides Rockpoint with an opportunity to deliver a unique industrial property in an important and undersupplied market.”
“Despite an overall sense of caution with respect to new investments in the current capital markets environment, we are excited about this opportunity given the attractiveness of our basis combined with significant rent growth that Broward County is experiencing as a result of historically low vacancy levels coupled with continued high demand,” Gilbane added.
When completed, The Pomp will be one of the largest mixed-use developments in South Florida, comprising more than 10 million square feet of entertainment, hospitality, retail and residential uses. Located less than 10 miles north of Fort Lauderdale, the project expands the existing site of Isle Casino Pompano — a former standardbred horse racing track and casino— and will also feature a 12-acre lake.
The Pomp will be anchored by sports entertainment company TopGolf, whose 65,000-square-foot facility will include a restaurant, bar and a rooftop terrace with views of the city.
“As progress continues across every facet of The Pomp, we are thrilled to work with Rockpoint on the industrial component of this game-changing project,” Corey Long, vice president of development at The Cordish Companies, said in a statement. “Rockpoint is one of the premier real estate companies in the United States. Today’s announcement continues our commitment to deliver a transformative, best-in-class development for the City of Pompano Beach and South Florida.”
Rockpoint will begin work on the site in May 2024, developing the industrial property over three phases.
While it’s too early to anticipate the type of tenants the new industrial property will attract — and no pre-leasing has taken place thus far, sources said — this particular site will differ significantly from typical industrial locations. When completed, Rockpoint’s development will sit adjacent to TopGolf, a public supermarket and a significant entertainment and retail complex, thereby creating a desirable location with added pull for future tenants.
No stranger to South Florida, Rockpoint has been one of the larger institutional investors in the market since the Great Financial Crisis — focused largely on opportunities in multifamily, condominium and office but also industrial buys. In June 2022, the firm made headlines when it sold a Brickell office tower for $286.5 million, marking the biggest sale since the pandemic hit at the time.
Its latest industrial acquisition also furthers Rockpoint’s strategy of investing in infill industrial sites across the U.S. In 2022, Rockpoint announced a joint venture with the Abu Dhabi Investment Authority, targeting $2 billion in industrial investment opportunities, specifically “build-to-core industrial investments,” as reported by The Real Deal.
And South Florida is one market where investment appeal shows no sign of slowing.
A mid-year report by Cushman & Wakefield outlined why South Florida’s industrial markets continue to be well-positioned, including “the scarcity of well-located developable industrial land, healthy lease absorption and rent growth statistics, along with the continued influx of new residents.”
Cathy Cunningham can be reached at email@example.com.