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500,000-SF Industrial Facility Goes on the Market

HIALEAH, FL-The former Winn-Dixie distribution facility, located just northeast of Miami International Airport, has a $13 million asking price. The owner purchased the facility 10 years ago and has made improvements and repositioned the facility as a multi-tenant building.

By Melissa Bogdany | Updated on July 23, 2004

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.

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