Cushman & Wakefield has negotiated the sale of 200 South Miami Avenue, a ±1.2-acre core infill site in the heart of downtown Miami that is currently home to FedEx’s ±110,000-square-foot, last-mile distribution center.
The Cushman & Wakefield brokerage team of Robert Given, Troy Ballard, in conjunction with Mike Davis, Travis Trautvetter, Rick Brugge, Michael Lerner and Colliers’ Gerard Yetming, represented Miami-based investor Fifteen Group in the disposition. Long Island-based developer Lalezarian Properties acquired the asset for $37.25 million, equating to $712 per square foot of land.
200 South Miami Avenue was developed in 1999 as a 109,637-square-foot, build-to-suit facility for FedEx. The six-story building serves as a last-mile warehouse and retail packaging center serving Miami’s downtown core. The global shipping giant recently signed a 12-year, triple-net lease at the property.
The concrete block building features 16-foot clear heights, 199 parking spaces and extensive frontage along South Miami Avenue and SW 2nd Street. The property’s prime location in downtown Miami offers excellent accessibility to all major thoroughfares, exceptional connectivity within the CBD via Miami’s expanding mass transportation system and market-leading walkability.
Current Miami21 zoning provides Lalezarian Properties with a number of options at 200 South Miami Avenue moving forward. The property can continue operations as a last-mile facility with a long-term Fortune 100 credit tenant; be redeveloped for nearly 2 million gross feet of mixed-use space or a ±80-story, ±1,200-unit residential tower; or be repurposed for other commercial uses such as office, retail and storage.
“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 and Senior Principal at Fifteen Group. “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.”
“This is a highly desirable, urban-core location with in-place entitlements for high-density projects, added Toal. “In the interim, the new owner has an investment grade tenant.”
“Covered land opportunities in South Florida are in extremely high demand,” said 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.”
“With such close proximity to two metro mover stations, the long -term development prospects for this site are outstanding,” added Ballard.
“Urban-infill, last-mile facilities continue to proliferate as distributors attempt to cut delivery times to their customers,” said Davis. “As such, we received tremendous interest from both institutional and private groups alike.”
Larry W. Genet is a Senior Vice President in the CBRE, Inc. Miami, FL office. As part of the CBRE platform Mr. Genet can provide a wide range of services from local to Fortune 1000 clients including agency and tenant representation, asset or portfolio management, high level logistics, labor and data analytics prior to site selection, project/construction management, capital markets, owner user sales and valuation advisory services. CBRE is the global leader for real estate services worldwide.
Larry has extensive experience in landlord agency, tenant representation, acquisitions, dispositions and property management. As a third-generation commercial real estate professional and South Florida native, Larry boasts deep community ties, an intimate knowledge of the South Florida market and numerous professional contacts. Larry’s leasing expertise of industrial, office, land, retail and medical properties coupled with his experience in acquisitions and dispositions gives him the ability to represent a myriad of clients in the South Florida market. Additionally, Larry controls a portfolio of 13.5 million square feet allowing him to see every deal in the market. This ensures his clients never miss an opportunity. His knowledge of tenants and buyers in the market is top notch and when coupled with his team's vast portfolio, it's a winning combination.
