By Mihaela Coste
Cushman & Wakefield negotiated the sale of an industrial asset located in the heart of downtown Miami that is currently home to FedEx’s distribution center. Long Island-based developer Lalezarian Properties acquired the asset from Fifteen Group for $37.3 million, or $712 per square foot of land.
Located at 200 S. Miami Ave., the 109,637-square-foot building offers convenient accessibility to all major thoroughfares, good connectivity within the CBD via Miami’s expanding mass transportation system, as well as high walkability. The asset features 16-foot clear heights and 199 parking spaces.
The six-story property was developed in 1999 as a build-to-suit facility for FedEx and currently serves as a last-mile warehouse and retail packaging center. FedEx recently signed a 12-year triple-net lease at the property.
Robert Given, Troy Ballard, Mike Davis, Travis Trautvetter, Rick Brugge and Michael Lerner of Cushman & Wakefield, along with Colliers’ Gerard Yetming, represented the seller.
Short- and Long-term Prospects
The Miami21 zoning allows the new owner a couple of options moving forward. The asset can continue operations as a last-mile FedEx facility, can be redeveloped for nearly 2 million gross square feet of mixed-use space, as an 80-story, 1,200-unit residential tower or it can be repurposed for other commercial uses.
“This transaction is an excellent example of what Fifteen Group has been doing for years—acquiring undervalued assets and creating value through aggressive asset management,” said Justin Toal, chief investment officer & senior principal at Fifteen Group, in a prepared statement. “In this case, we were able to negotiate a long-term extension with FedEx at an attractive rent and subsequently offer an excellent product to the investment market.”
“Covered land opportunities in South Florida are in extremely high demand,” added Given. “200 South Miami Avenue provided investors with the opportunity to acquire an asset with excellent short- and long-term prospects. This unique combination of exceptional status-quo performance along with outstanding redevelopment and reuse options drove investor interest and value.”
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