Ronald Winokur of The ComReal Companies assisted in the sale of the South Florida warehouse known as Carl’s Furniture. The property is located at 6810 State Road 7 in Coconut Creek, Florida.
The sales price was $12,700,000. The mixed use building includes 80,000 square feet of retail space, 50,000 sf of office space and 270,000 sf of warehouse space, totaling slightly over 400,000 sf and making it one of the largest sales of 2012. The buying entity, Coconut Fields, LLC, is majority owned and controlled by Kim and Steve Fields of Parkland, Florida, who are private commercial real estate investors with expertise in retail, office and warehouse space. The selling entity was 559 North Federal Associates, which includes former executives of the Carl’s Furniture company. Ron Winokur of ComReal and Susan Baker of Worldwide Realty brokered the transaction between buyer and seller.
Carl’s Furniture will continue to operate its retail, office and warehouse operations in a portion of the building. Separately leased Carl’s Patio store, which is neither owned nor affiliated with Carl’s Furniture, has indicated that, after consolidating and selling inventory from other stores, it will probably vacate the premises. Park Creek Surgery Center and Diagnostic Professionals, Inc. (dba Park Creek Imaging Center) will continue to operate at the property.
With over 400,000 sq. ft. of bricks and mortar, Fields is excited about the prospect of repositioning the building with new tenancies and enhancing value. The building provides retail opportunities in the front of the building, executive office rental opportunities in Carl’s beautiful corporate offices and attractive warehouse/distribution opportunities in the rear of the building. The building is well positioned on the north-south corridor of State Road 7, at the heavily trafficked corner of Route 441 and Hillsboro Road, with close proximity to the Sawgrass Expressway (immediately South) and Interstate-95 (to the East).
Fields has immediate plans to improve the visibility of the building by reducing the large berm in the front of the building and altering the landscaping along State Road 7, thereby opening up the property, increasing the visibility of the building and attracting retailers who have been put off in the past. Second, Fields is in the process of converting Carl’s former offices into an “Executive Suites” business. The beautifully built offices formerly used by top executives of Carl’s will be available for rent by the room, with shared reception/secretarial staff, access to gorgeous conference rooms and available photocopy, facsimile and other resources offered by Elite Office, LLC (website www.eliteofficespace.com). This is a perfect solution for those who do not need a full office but desire all the amenities associated with high end office space.
At a purchase price of less than $35 per square foot, Fields views its most recent acquisition as a strong addition to its portfolio. The greatest challenge for the new owners will be re-leasing the warehouse in the rear. With a footprint of approximately 210,000 sq. ft. plus mezzanine space, the warehouse is massive. Mitigating this risk is the fact that the 10-year old building offers some of the highest ceilings in the market, with over 38 feet of clear space and available expansion land if desired. Plus, the warehouse is easily accessible from Hillsboro Road, providing access to both I-95 to the East and the Sawgrass Expressway to the South. These features present a unique opportunity for a warehouse/distribution user desiring to cater to the greater southeastern Florida market. Neighboring Parkland, West Boca and Coconut Creek have all witnessed growth in recent years. With additional housing growth expected in Parkland and extensive commercial growth surrounding the renovation of Seminole Casino in Coconut Creek, the former Carl’s building is well positioned to benefit. The recent rebound in the South Florida economy, coupled with a scarcity of buildings of this grand size, will present unique opportunities for the building, and Fields is prepared to offer space at attractive prices to shorten expected lease up times.