An affiliate of Principal Financial Group, a publicly traded pension fund adviser, purchased five of the buildings, which total 709,000 sf. The sixth building was sold to Telefónica Data USA Inc., a tenant at the class A park.
Bidding for the 147-acre property was competitive, according to a Swerdlow spokesperson, as institutional investors see this submarket as desirable for industrial investment. The park's proximity to Miami International Airport, the country's busiest airport for international cargo traffic, helps. Also near the Port of Miami, the industrial park is a hub for international transportation and logistics companies.
The buildings sold were near full occupancy. Besides Telefónica, tenants at the park include: DHL Airways; Danzas Corp.; the US Postal Service; Savino Del Bene, an Italian international freight forwarder; and Senator International, a transportation and logistics company based in Germany. Telefónica, a tenant at the park for the last three years, has plans to grow its 174,000-sf web hosting and data center operations there.
"You can't go wrong investing in real estate in key transportation hubs," says Michael J. Swerdlow, chairman and CEO of Swerdlow Group. "It's almost an investment hedge."
In a statement about the sale, Swerdlow adds: "Miami's Airport West market is one of the best-performing in the nation for industrial properties. As a developer, we timed our investment well and were able to capitalize on the tremendous growth that is occurring in the local market and in South Florida in general."
James Halliwell, managing director of Principal Real Estate Investors, a member of Principal Financial Group, says Dolphin Commerce Center is an "excellent long-term investment" and is expected "to reap the benefits of the area's growing importance as a hub for international companies conducting transatlantic and trans-America business."
Principal Financial Group has hired Swerdlow Group to manage the park.
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