X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

MIAMI-The Miami-Dade County Commission approved a request this week to order two independent appraisals on a 54-acre industrial site that the Port of Miami now leases from a subsidiary of Florida East Coast Industries Inc. for container-storage uses.

Since the lease expires on Dec. 31, there is strong evidence Jacksonville, FL-based FEC is considering either divestiture or development options on the rail-accessible site at 100 N.E. 36th St.

Officials at FEC have referred all questions about the site to the Miami-Dade County Seaport Department, which has not responded to a request from GlobeSt.com for additional information about the current negotiations.

Sources familiar with the those negotiations suggest FEC has proposed an increase in the lease rate it is asking, requiring the county to confirm that proposed market rate or to consider a buyout.

“Upon conclusion of the appraisals, the department will work with the FEC to determine a fair acquisition cost, while reaching out to the adjacent communities for their input on the proposed project,” Miami-Dade County Manager Steve Shiver advises in a memorandum sent to the county commission.

It has been less than a year since the Seaport Department last ordered appraisals on the site as part of a regularly scheduled review process that occurs about every three years.

“At this time, future and final use of this property, also known as the Buena Vista site, has not been decided,” Shiver writes in the memo.

“However, it is important to the Seaport Department to conduct an appraisal of this property should FEC place the site on the market for sale. Accordingly, FEC and the county have entered into a non-binding letter of intent expressing our mutual interest in negotiating this transaction.”

A number of business leaders and residents oppose any use of this property that does not maximize its potential value to the community. Already some are suggesting that either a mixed-use commercial and residential development best serves this mostly low-wage-earning community.

It is difficult to get an immediate indication of land values in this largely industrial area just to the north of Downtown, because properties surrounding the site contain a mixture of industrial, light manufacturing, retail and even multifamily use under liberal commercial zoning ordinances.

One property, 13,800 sf of vacant industrial land just south of the 54-acre site on Northeast 29th Street, sold last December for $110,000 or $7.97 per sf, for instance.

Further to the south along Northeast 27th and 28th streets, a buyer acquired seven parcels in July totaling about 61,250 sf for $710,000, or about $11.59. However, about 20% of the total square footage contained improvements.

If those property sales are any indicator, the county may be facing an estimated purchase price ranging between $18 million to $27 million.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt. NET LEASE 2020Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information
 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.