Terra Sells Former PepsiCo Site in Doral for $55M
The buyer has ties to a California-based logistics real estate investor.
PepsiCo’s former headquarters and distribution facility in Doral traded for $55 million amid a hot Miami-Dade County industrial market fueled in part by e-commerce growth.
Former co-owners, Miami-based Terra and Miami Beach-based Terranova Corp., sold the property just off the Palmetto Expressway to a group linked to California-based logistics real estate investor, GLP Capital Partners.
The buyer is listed in a Miami-Dade deed record as Park 7777 NW 41st Street Owner LLC, which lists the same address as GCP.
The 232,919-square-foot, three-story facility sits across a nearly 24-acre site and current zoning allows for up to 500,000 square feet of commercial space.
It’s a prime location just north of the Northwest 36th Street on- and off-ramps of the Palmetto Expressway, and less than two miles from Miami International Airport. The address is 7777 NW 41st St.
Terra and Terranova together bought the property for $40.3 million in January 2018 and leased it back to PepsiCo through July 2020. PepsiCo ran its regional headquarters and distribution facility there. PepsiCo is based out of Harrison, New York.
Terra, led by David Martin, is primarily known for its luxury residential towers in Miami’s Coconut Grove, but it has other real estate endeavors as well.
Most recently, Terra announced its 460-unit garden-style multifamily complex Natura Gardens in West Miami-Dade in partnership with New Valley. The project is to rise just north of planned megamall American Dream Miami. Terra originally had planned 1,400 apartment units on the site but scaled-down its project and sold the remainder of the property for $53.5 million to Butters and Greystar.
Read more:
Terra Starts Scaled-Back Version of Northwest Miami-Dade County Multifamily Development
Terranova, founded and led by Stephen Bittel, is a commercial real estate firm with over $1 billion in assets.
Buyer GCP is led by Alan Yang, the former chief investment officer of Singaporean global investment manager GLP. The logistics real estate investor has deployed more than $6 billion in equity across the U.S. and closed more than $50 billion worth of real estate deals across the world, according to its website.
The Terra-Terranova sale of the former PepsiCo site breaks down to of $2.3 million per acre of land, a top price for industrial real estate in South Florida.
Although the COVID-19 pandemic has thrown into question several real estate asset classes, industrial has been a top performer as it’s benefited from e-commerce growth and pent-up demand for last-mile distribution facilities. Quarantining and stay-at-home orders have prompted consumers to turn to online shopping.
More than 2 million square feet of industrial real estate was leased in Miami-Dade last year, a market record, according to JLL data. Most of the absorption was in the North-Central Miami-Dade submarket that accounted for 1.3 million square feet of absorption at industrial parks such as Eastview Commerce Center, Gateway Commerce Park and Bridge Point Commerce Center.
The Miami-Dade vacancy last quarter went down to 5.3% with an average asking rental rate of $8.30 per square foot, JLL shows.