$32.5 Million Industrial Portfolio Sale Brokered by IPA
January 09, 2018
MIAMI, Jan. 9, 2018 – Institutional Property Advisors (IPA), a division of Marcus & Millichap, (NYSE: MMI) announces the sale of the West Hialeah Industrial Portfolio, a 376,016-square-foot industrial warehouse complex located in West Hialeah, Florida. The property sold for $32.5 million.
“Strong demand for industrial space and the lack of available sites for new development in both the Hialeah and Miami Airport industrial submarkets place the portfolio in position for continued stable occupancy and sustained rental growth,” says Douglas K. Mandel, senior managing director. “Unlike most of the other industrial assets within the submarket, 95 percent of the portfolio’s leases have triple-net structures with annual increases that average nearly 4.5 percent, thus providing new ownership with predictable cash flow, superior rental appreciation and minimal exposure to expense fluctuations.”
Mandel and Benjamin Silver, director, represented the seller, The Realty Associates Fund VIII, an affiliate of TA Realty, and procured the buyer, Cofe Cix West Hialeah LLC.
The West Hialeah Industrial Portfolio consists of 41 freestanding multi-tenant buildings that range in size from approximately 4,000 square feet to approximately 28,000 square feet. The portfolio is arranged in two separate clusters, one located just west of the Red Road corridor and north of the Hialeah Expressway and one west of West 16th Avenue and north of Okeechobee Road. The Hialeah Expressway and Okeechobee Road both feed directly into the Palmetto Expressway, one of Miami’s main traffic arteries.
“Investor demand for industrial properties is fierce,” adds Mandel, who has recently marketed another 200,000-square-foot portfolio of small-bay warehouses in Miami, a 125,000-square-foot portfolio in Fort Lauderdale and 50,000 square feet of warehouses in West Palm Beach. “Low vacancy, climbing rental rates, scarcity of available options for tenants and the low cost of operations has increased demand for small-bay warehouses across south Florida. Our pipeline of industrial property is growing and we anticipate several more offerings in 2018.”