HIALEAH, FL-EJGJ Ltd. has decided to sell its Econocaribe Facility, a 500,000-sf industrial facility in Miami, and one offer is “being actively negotiated,” according to Jonathan Kingsley, managing director and executive vice president for Grubb & Ellis Co. in South Florida, which was hired to sell the building.The project is located just northeast of Miami International Airport, and has an asking price of $13 million. Kingsley sold the building to its current owner in 1994, at which time it was a vacant Winn-Dixie distribution facility.”It was in disrepair, a bit of a white elephant,” Kingsley says. “Over the years, the owner put a significant amount of money into the building.” The fully leased asset has been repositioned as a multi-tenant building and has achieved stability in terms of its rent roll, he reports. With these changes, Kingsley says he thought it would be a good opportunity to sell.”It’s an opportunity for the owner to get significant value out of it,” he says. “We’ve had a lot of offers come in and one that’s being actively negotiated.”The price represents $26 per sf–much lower than market rates, Kingsley says. “The average price per sf today is north of $40,” he reports. The $26 price per sf would be an 8% to 10% return.The rental rates in the building average $4 per sf gross. Recently Bernuth Agencies Ltd., a South Florida freight-forwarding company, leased the last block of 70,000 sf in the building in a lease valued at from $1.3 million to $1.4 million.”The site is not fully utilized right now,” Kingsley says. “There is potential to take a couple of the older, outlying buildings and at some point,” the buildings could be demolished and used more efficiently. “That could be an upside for a new owner.” Brian DiRienzo and Grant Savage, both vice presidents in Grubb & Ellis’ Investment Services Group, are marketing the facility to investors.

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
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Dig Deeper

 

GlobeSt Net Lease Spring 2024Event

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 © 2024 ALM Global, LLC. All Rights Reserved.