Reese Stigliano, SIOR, principal at Berger Commercial Realty Corp, announces the sale of a 13,958 square foot warehouse condominium located at 6851 West Sunrise Blvd. in Plantation, Florida.
Stigliano represented the seller, CBB OREO, LLC. , a division of Community Bank of Broward who acquired the property through foreclosure in January 2011. The previous owner purchased the property in 2004 for $1,113,000. The property closed last week for $687,500, a 40% reduction from the last sale.
The buyer, H.K.Trading & Company, Inc. will use the property for their corporate headquarters and distribution facility.
According to Stigliano, “This sale is significant because it indicates the commercial real estate market may have hit bottom. Buyers are taking advantage of the opportunity to purchase at below replacement value and there is an underlying sense that prices may be creeping higher.”
In addition to the low price, the buyer took advantage of the historical low SBA financing available. The SBA guaranteed loan provided 90% financing of the total acquisition cost at a blended rate of less than 5% interest rate.
On the commercial real estate market in general, Stigliano commented, “Many of the investors we deal with today agree, the period we are now experiencing is a generational opportunity to buy real estate.”