Formerly utilized by a local energy drink company, an industrial facility is now available for lease. The prestigious commercial brokerage firm, Cushman & Wakefield (NYSE: CWK), has secured the exclusive leasing rights for Building A of the South Florida Distribution Center.
Situated at 20311 Sheridan St. in Pembroke Pines, this expansive 224,560-square-foot facility was established in 2018. It previously served as a distribution hub for Vital Pharmaceuticals, the parent company of Bang Energy, based in Weston. Following its acquisition by Monster Energy Corp. (Nasdaq: MNST) from the U.S. Bankruptcy Court, 463 employees were subsequently laid off in Broward County.
In July, Arrowrock IV South Florida Distribution Center LLC, an affiliate of St. Louis-based Summit Realty Group, completed the acquisition of both the former warehouse and an adjacent 23.2-acre parcel designated for industrial use, for a total of $59.84 million.
Dogwood Industrial Properties, a logistics real estate operator and investor established in 2019 by the global investment firm TPG, also played a role in this acquisition. TPG manages assets worth $127 billion. The properties were divested by subsidiaries overseen by John Owoc, the founder of Bang Energy. Owoc also served as a board member and CEO of Vital Pharmaceuticals before his dismissal in March.
Vital filed for Chapter 11 reorganization in October 2022, citing issues with a distribution agreement with PepsiCo and legal disputes with Monster Energy, based in Corona, California. Combined, Monster Energy and its affiliate, Orange Bang, held more than $500 million in legal judgments against Vital and Bang Energy.
Vital has filed a lawsuit against Owoc to regain intellectual property rights for Bang Hard Seltzer, aiming to include the formula in the company’s $362 million sale. Cushman & Wakefield’s South Florida Industrial Team is overseeing leasing efforts for Building A of the South Florida Distribution Center, which comprises three separate bays with office spaces and high dock doors. The center is currently available for occupancy, with an additional 137,700 square feet available in the second quarter of 2024.
The Class A distribution space is expected to attract significant interest in the market. Construction of a new 281,145-square-foot industrial spec building is set to begin early next year.
The South Florida industrial market is not as robust as in 2021 and 2022, but vacancies remain low in Miami-Dade, Broward, and Palm Beach counties. The warehouse market remains highly competitive, with average asking rents in Broward County reaching $15.03 per square foot, and in the Southwest Broward submarket, asking rents averaged $14.75 per square foot.
