The Centergate at Gratigny distribution facility and a neighboring development site in Hialeah sold for $95.75 million.
The deal went down in two transactions. Centergate at Gratigny, an affiliate of Barclays Capital Real Estate, sold the 970,804-square-foot warehouse and manufacturing center at 6301 E. 10th Ave. for $78 million to PRII Centergate 1 LLC, an affiliate of Prudential Insurance Co. of America. The price equates to $80 per square foot for the property.
David Wigoda, a senior VP and industrial specialist for JLL in Miami-Dade and Broward counties, said the price is consistent with rents in the Gratigny area and reflects that large spaces like at Centergate generally lease for less than smaller industrial spaces. Industrial rates in Gratigny are generally less than in the competitive markets of Medley and Miramar, he added.
"We've seen buildings trade for more than $100 per square foot in Medley but those are with smaller tenants," said Wigoda, who wasn't involved in the Centergate deal.
A vacant 29.3-acre on the south side of the building was sold for $17.75 million to a Prudential affiliate called PRII Centergate 2 LLC. The price was $14 per square foot. According to an online listing, that site is planned for 630,000 square feet of industrial space.
Wigoda said that the positive industrial space absorption rate in north Miami-Dade justifies the construction of more warehouses and this 29.3-acre parcel is among the largest sites available there. He noted that Prudential recently built a speculative industrial building near Miami International Airport that has had success finding tenants.
The property is off the Gratigny Parkway along the CSX Railway. The facility was developed on the 47.1-acre site in 1999 for a single-use tenant. It has a 32-foot clear height and also contains some office space.
Caterpillar and Bullet Line are among the largest tenants.
Barclays seized both sites in a $75.2 million deed in lieu of foreclosure in 2009. Wigoda said Barclays increased the value of the property by breaking it up for multiple tenants and leasing it out. The fact that Barclays sold it for more than the foreclosure amount shows just how much the market has improved, Wigoda said.
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