CBRE has arranged the sale of Centergate at Gratigny in Hialeah.
The 3-building property, located at 5801 and 6301 East 10th Avenue, was sold on behalf of PRII CENTERGATE 1 LLC and PRII CENTERGATE 2 LLC, subsidiaries of Prudential Real Estate Investors, which acquired the property in 2015. The seller was exclusively represented by the CBRE Capital Markets team of Vice Chairman Chris Riley, Vice Chairman Christian Lee, and Executive Vice President José Lobón.
RREEF CPIF Centergate at Gratigny I & II LLC, an affiliate of RREEF America, a commercial real estate investment arm of Deutsche Bank, purchased the property for $178 million.
The deal closed August 22.
“Centergate is one of the largest industrial offerings to come for sale in South Florida in recent years. Given the challenges to aggregate square footage in our market, Centergate presented a unique opportunity to acquire critical mass in one of the most desirable logistics markets in the nation,” said Lobón.
The Class A industrial property features a 978,164-sq.-ft. distribution and light assembly warehouse (“Phase I”) and two newly constructed state-of-the-art distribution buildings totaling 602,657 sq. ft. (“Phase II”). Phase I was built in 1999 and features a mix of 32’, 17’, and 13’ clear span heights, an above-market 1.7 per 1,000 sq. ft. auto parking ratio, 140 trailer parking spaces, and 7% overall office finish. Phase II features 32’ clear span heights and a dock-high rear-load configuration with ample dock-high doors given its 233’ deep buildings.
The property is anchored by Bullet Line, a leading supplier of low-price promotional products. Other significant tenants include Carnival Cruise Lines, which can conveniently service its ships in both Port Miami and Port Everglades from this location, as well as Veritiv, a Fortune 500 business-to-business distributor of packaging, as well as print and publishing products.
The South Florida industrial market remains robust, with 37.8 million sq. ft. of net absorption over the last five years, more than 1.6 times the 23.1 million sq. ft. of new deliveries over the same time frame. This record-level activity has caused vacancy rates to remain below 4% throughout the Tri-County region, with Miami-Dade County registering a mere 3.5% vacancy. These fundamentals have been advantageous to landlords, with market rents growing 35% since 2011–equal to average annual growth of 4.9% over that time frame.
The CBRE Capital Markets team also included First Vice President Amy Julian, with CBRE’s Debt & Structured Finance, and Financial Analyst Royce Rose. The Miami-based CBRE Industrial Leasing team of Devin White and David Albert assisted in the marketing of the property.