200 South Miami 200 South Miami

MIAMI—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, has traded hands. The sale price: $37.25 million, or $712 per square foot of land.

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.

“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,” says 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. In the interim, the new owner has an investment grade tenant.”

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.

“Covered land opportunities in South Florida are in extremely high demand,” Given tells GlobeSt.com. “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.”

The concrete block building features 16-foot clear heights, 199 parking spaces and frontage along South Miami Avenue and Southwest Second Street. The property’s location in Downtown Miami offers accessibility to all major thoroughfares and connectivity within the CBD via Miami’s mass transportation system and market-leading walkability.

(Are we about to see more office construction? Get one view.)

Current Miami21 zoning provides Lalezarian with several 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. It could also be redeveloped for nearly 2 million gross feet of mixed-use space or an 80-story,200-unit residential tower or be repurposed for other commercial uses such as office, retail and storage.

“Urban-infill, last-mile facilities continue to proliferate as distributors attempt to cut delivery times to their customers,” Davis tells GlobeSt.com. “As such, we received tremendous interest from both institutional and private groups alike.”