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SOUTH MIAMI INDUSTRIAL PORTFOLIO | EXECUTIVE SUMMARY
Scale and Synergy
The South Miami Industrial Portfolio represents a unique opportunity
to aggregate a critical mass of industrial assets in a gateway market
with high barriers to entry. Of 11 individual buildings, 10 are located
within a tight industrial node flanked between South Dixie Highway and
Florida’s Turnpike. Those 10 buildings represent 18.0% of all industrial
space (buildings over 10,000 SF) in that industrial node.
The ability to control roughly 400,000 SF of small bay industrial
buildings (including the potential for a 30,972 SF building on a
development-ready pad) will allow new ownership incredible leverage
to grow rental rates and benefit from operational efficiencies that
result from the Portfolio’s economies of scale.
Strong Demand and Limited Supply
The Miami-Dade Industrial market is one of the tightest and most
fundamentally sound in the entire country, with an overall vacancy
rate of 4.4% at the end of third quarter, 2016, due in large part to land
constraints, population growth and its strategic position as a gateway
market.
The South Dade submarket finished the quarter with an even
lower vacancy of 3.1%.
Demand in the submarket is being driven by
steady population growth, residential development spurred by the
desire for more affordably priced living options, and entrepreneurial
activity focused on delivering goods and services to this growing
population base. Moreover, while there are bulk distribution warehouse
projects under construction in primary submarkets surrounding Miami
International Airport, much of which have been pre-leased to large
format tenants, there is currently no construction of industrial product
underway in the supply-constrained South Dade submarket. As a result,
these dynamics are expected to apply upward pressure on rental rates.
“Plug-and-Play” IndustrialOperation
The Seller is offering
a “turn-key”
industrial operation
including a
full-time property manager and on-
site maintenance professional who
would remain in place post-closing.
The retention of key personnel
intimately familiar with the Properties
would allow an investor a seamless
ownership transition with minimal
disruption or oversight responsibility,
which in turn would positively impact
the investor’s return on equity.
Mak Too
Mak 3
SW 106th Avenue
As the only road leading to The Home
Depot, SW 106th Avenue provides
tenants at Mak Too and Mak 3 prime
frontage and allows for quasi-retail uses
and higher rental rate potential.
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