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BBX, PCCP land $31M construction loan for Delray Beach industrial project
Financing is for first phase of three-building warehouse complex on 40 acres
From left: A photo illustration of BBX CEO Jarett Levan and PCCP Senior Managing Partner Donald Kuemmeler along with an aerial view of the development site at 9773 and 9863 Happy Hollow Road in Delray Beach (Getty, BBX, PCCP, Google Maps)
BBX Capital’s logistics arm and PCCP scored a $31.1 million construction loan for the first phase of a Delray Beach industrial complex.
Miami-based City National Bank of Florida provided the financing to Fort Lauderdale-based BBX and Los Angeles-based PCCP, records show. The joint venture plans to break ground soon on a 200,000-square-foot building, representing the first of three warehouses that will constitute BBX Park at Delray, a press release states.
In August, BBX and PCCP paid $25 million for 40 acres at 9773 and 9863 Happy Hollow Road, records show. The development site has approval from the city of Delray Beach for 672,533 square feet of warehouse space, the release states.
The joint venture plans to target tenants in service industries that cater to businesses in Palm Beach County, the release states. Each of the three planned buildings will be able to accommodate bays as small as 50,000-square-feet.
As part of forming the joint venture, BBX made an initial equity contribution of $2.9 million and has to contribute an additional $2.5 million, the release states.
Led by CEO Jarett Levan, BBX is a publicly traded private equity firm that manages more than $10 billion in assets, the release states. The company’s commercial real estate and industrial arms are primarily focused on developing and acquiring projects in Florida.
In September, BBX subsidiary Altman Companies went under contract to acquire a 3.4-acre development site at 11240 Biscayne Boulevard near North Miami. The purchase price has not been disclosed. Altman plans to build a multifamily complex with 373 apartments, with 12.5 percent of the units set aside for workforce housing.
PCCP, a real estate finance and investment firm led by senior managing partner Donald Kuemmeler, has $22.5 billion in assets under management on behalf of institutional investors, the release states. In February, PCCP paid $125 million for a six-story building with 251 apartments in Santa Clara, California.