
7040 SW 22 Court
Industrial | 6.90% CAP
Marketing description
The Property is zoned RAC-RTW — Davie Regional Activity Center / Research & Technology West District. RAC-RTW is a flexible, mixed-use zoning category established by the Town of Davie to encourage research, technology, office, residential, mixed-use, and accessory retail — substantially broader than the typical light-industrial classification. This zoning unlocks substantial post-lease value.
The Subject is located in Davie's SW 22nd Court industrial pocket, an established light-industrial corridor 3.5 miles south of Florida's Turnpike, 3.5 miles east of I-595, and 6 miles west of I-95. The Fort Lauderdale-Hollywood International Airport is 9 miles east, providing immediate access to one of South Florida's primary cargo and passenger gateways.
Surrounding uses include warehouses, outdoor storage yards, equipment contractors, and adjacent residential. The Davie Industrial Center — a new 226,699 SF speculative IOS / distribution project developed by Industrial Outdoor Ventures — is located approximately 1 mile away, demonstrating institutional demand for the submarket.
Aqua Gunite, Inc. is the concrete and shotcrete division of Aqua Escapes, a Florida-based design-build firm founded in 2008 by Mike McKenzie, a specialty contractor with more than 30 years of experience building custom waterfalls, pools, and commercial water features worldwide. Launched in 2020 to bring gunite production in-house, Aqua Gunite operates a substantial network of trucks and field crews and maintains the capability to produce its own ready-mix concrete — precisely the fleet-and-materials-intensive operation that depends on secured yard space like the subject property. The parent organization holds both a Florida Commercial Pool Contractor license (CPC 1457918) and a General Contractor license (CGC 1514637), serving residential and commercial clients throughout South Florida.
Investment highlights
- 5-year lease with Aqua Gunite, Inc. (executed Dec 2024) producing $70,452 in Year 2 contractual rent. 3% annual escalators provide built-in income growth through 2029.
- 0.32-acre industrial outdoor storage yard in Davie's SW 22nd Court industrial corridor — minutes from I-595, I-95, FL Turnpike, and the Fort Lauderdale-Hollywood International Airport.
- Davie Regional Activity Center / Research & Technology West designation permits a far wider range of higher-and-better uses than typical industrial dirt — research, tech, office, residential, mixed-use — providing exit optionality at lease expiration.
- Lease passes through all tax increases over 2024 base year, plus insurance, maintenance, and sales tax. Landlord obligation: 2024 base RE taxes only ($2,055/year per 2023 actual).
- IOS rents have grown 123% since 2020. Institutional capital — Alterra IOS / Blue Owl ($150M facility, 21 properties), Zenith / JPMorgan ($1.5B GAV), Blackstone — continues to drive cap rate compression in primary markets.
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