$178M Hialeah Centergate Sale Is Florida's Biggest Industrial Deal This Year
A subsidiary of DWS Investment Management Americas buys the Centergate complex for more than $111 a square foot.
August 26, 2019 at 02:01 PM
4 minute read
The robust Miami-Dade County industrial market, perhaps the strongest real estate category, just reached a whole new level with the state's biggest sale of the year at $178 million.
Investment management firm PGIM, a subsidiary of Prudential Financial Inc., sold the three-building, 74-acre Centergate at Gratigny in Hialeah on Thursday to RREEF America, a subsidiary of DWS Investment Management Americas Inc.
The South Florida Business Journal first reported the price and buyer.
Centergate is south of the Gratigny Expressway at 5801 and 6301 E. 10th Ave., giving tenants easy access to the highway, which is a major east-west connector in northwest Miami-Dade.
Hialeah is a growing real estate market across asset classes in large part because of its access to nearby major roads, including the Palmetto Expressway, Interstate 75 and Interstate 95.
Centergate is next to a Gratigny ramp, which is a six-mile drive from I-75 and the Palmetto.
The industrial complex is a mix of new construction and an older Class A building. The building at 6301 E. 10th Ave. is a 978,164-square-foot distribution and light assembly warehouse built on 47 acres in 1999, according to county property records.
Immediately to the south at 5801 E. 10th Ave. are two buildings with a combined 602,657 square feet built in 2016.
The ceiling heights at the bigger building are 32, 17 and 13 feet. The building has 1.7 parking spots for every 1,000 square feet, which is more than usual for industrial properties. There are 140 trailer parking spots and 7% office finish. The two newer buildings have 32-foot clearing heights.
The total 1.6 million square feet means the sale breaks down to $111.25 per square foot.
While the total sale value is a record for the industrial market, the sale price per square foot isn't.
Earlier this month, a five-building Miramar portfolio closed at $192 per square foot, and the 14-acre Airport Trade Center west of Miami International Airport traded for $152 per square foot.
Centergate's anchor tenant is Polyconcept North America Inc. subsidiary Bullet Line LLC, a supplier of low-cost promotional products such as pens and bags. Other tenants include Carnival Cruise Line and Veritiv Corp., a logistics and supply chain management company.
Miami-Dade industrial demand is strong and driven by the growth of e-commerce, while land available for new construction is limited.
A net of nearly 38 million square feet was absorbed over the last five years, much more than the 23 million square feet of newly completed space, according to CBRE Group Inc., which closed the Centergate deal.
The low 3.5% industrial vacancy rate in the county has allowed landlords to raise rents by 5% on average annually.
CBRE vice chairman Chris Riley in Atlanta as well as vice chairman Christian Lee and executive vice president Jose Lobon, both in Miami, closed the deal on behalf of the seller.
"Centergate is one of the largest industrial offerings to come for sale in South Florida in recent years," Lobon said in a news release. "Given the challenges to aggregate square footage in our market, Centergate presented a unique opportunity to acquire critical mass in one of the most desirable logistics markets in the nation."
Buyer RREEF didn't return a request for comment by deadline.
Related stories:
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllHow Much Coverage Do You Really Have? Valuation and Loss Settlement Provisions in Commercial Property Policies
10 minute readThe Importance of 'Speaking Up' Regarding Lease Renewal Deadlines for Commercial Tenants and Landlords
6 minute readMeet the Attorneys—and Little Known Law—Behind $20M Miami Dispute
Trending Stories
- 1On the Move and After Hours: Brach Eichler; Cooper Levenson; Marshall Dennehey; Archer; Sills Cummis
- 2Review of Ex-parte orders by the Appellate Division
- 3'Confusion Where Previously There Was Clarity': NJ Supreme Court Should Void Referral Fee Ethics Opinion
- 4How Amy Harris Leverages Diversity to Give UMB Financial a Competitive Edge
- 5Pa. Judicial Nominee Advances While Trump Demands GOP Unity Against Biden Picks
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250