Terra and Terranova Corp. have just sold the 23.7-acre former PepsiCo regional headquarters and distribution center site in Doral, Fla., three years after having acquired the asset in a $40 million sale-leaseback transaction.
The companies sold the property to a Santa Monica, Calif.-based entity, cited in Miami-Dade County records as Park 7777 NW 41st Street Owner LLC, for $55 million. Terra and Terranova note that the seller shares the same address with logistics real estate investment firm GLP Capital Partners.
Carrying the address of 7777 N.W. 41st St., the PepsiCo site sits just off the Palmetto Expressway at the epicenter of Doral’s vibrant industrial market, roughly 2 miles from Miami International Airport. Zoned for industrial development, the property has space for as much as 500,000 square feet of construction. With metropolitan Miami being ripe for new deliveries, Terra and Terranova’s plan for the site after the July 2020 expiration of PepsiCo’s leaseback agreement included such proposals as the District 79 mixed-use industrial project; however, the vision never included a short-term hold.
The Land Has It
The PepsiCo site’s sales price of approximately $2.3 million per acre constitutes a sizeable price tag for industrial real estate in South Florida. Across the U.S., investors placed a premium on land in 2020, and more of the same is on tap for 2021.
According to a National Association of Realtors survey, in the fourth quarter of 2020, the highest year-over-year increase in property values among all asset types was for land—4 percent. Realtors also expect land to outperform all property types in the first quarter of 2021, with an anticipated year-over-year increase in prices of 3 percent.