Coconut Grove-based B&L Management Group paid more than $11.97 million on Friday for a three-building industrial portfolio west of the Florida Mall, offering synergies with a flex-industrial property they own across the street.
Located at 2400 Sand Lake Road and 8100-8150 Chancellor Square, the 34-year-old "Chancellor Square" buildings total 141,778 square feet. They were 92 percent leased at time of sale with tenants that include a technical college, language school and construction company.
An affiliate of Prologis was the seller, having previously paid $7.45 million for the property in March 1998 as AMB Property Corp., two industrial real estate giants that merged in 2011.
B&L Management Group and sister company B Developments are commercial property investment, management and development companies dating back to the 1930s in Miami, owned by the Argentinian-American Barbagallo family.
B&L claims a portfolio of more than 500,000 square feet of multifamily, retail and office space across Florida.
That includes 270,000 square feet directly across Sand Lake Road from the former ProLogis property, a series of flex buildings that are currently 80 percent leased on the industrial side and 50 percent leased for its office.
HFF's Marty Busekrus out of Miami was charged with taking Prologis' Chancellor Square property to market in Third Quarter 2016. "We reached out to (B&L) early on, they seemed like a logical purchaser for this asset given what they owned in the immediate area," he said.
Nathan J. Eissler, associate with Avison Young in Orlando, has been the leasing agent for B&L's other property and will pick up the newly-acquired Chancellor Square.
"This was an opportunistic purchase for (B&L)," he said. "The Chancellor Square buildings have great occupancy, a great tenant mix and because of the nearby property is gives us a higher market portfolio occupancy, and will allow us to cross-market the properties."
The buyer sourced a $7.625 million loan from New York-based Benefit Street Partners to support the acquisition.