The redevelopment, branded Hazel Doral, will replace the three-story, 109,750-square-foot Westside Plaza II office building with a seven-story multifamily development featuring 380 apartments. Forty percent of the units will be designated as workforce housing to comply with the Live Local Act.
A report from Prologis Research indicates a new industrial real estate cycle is kicking off in 2026. Although rental demand was soft in the first half of 2025, it improved in the back half as trade headwinds cleared and corporations refocused on long-term supply chain needs.
Institutional investors are gravitating toward small-bay assets ahead of a broader industrial recovery, drawn by stronger income visibility, resilient demand, and more straightforward underwriting.
Terreno Realty’s shares have performed well but still appear modestly undervalued—by roughly 7%—suggesting that while the landfill-to-logistics strategy adds credibility to the story, its long-term value will depend on consistent execution rather than any single completed building.
The transaction reflects a growing trend across South Florida, where developers are adding residential projects to underused office parking lots.