MIAMI-When Flagler’s Asset Solutions Group took over Centergate at Gratigny in January, the mixed-use business park was nearly vacant. Fast-forward nine months and Flagler reports 275,000 square feet of new lease transactions, bringing occupancy to nearly 30 percent.
Flagler revitalized the 978,164-square-foot business park with a beautification project that has helped it ink long-term leases with Carnival Cruise Lines, Miami International Freight Solutions, and Electronic Transaction Consultants.
“Everybody is chasing the same prospects out here,” Eric Swanson vice president at Flagler Development, tells GlobeSt.com. “We worked to identify the prospects that fit into this building, then went after them with a vengeance and refused to let them go anywhere else.”
Carnival Cruise Lines leased 175,000 square feet of warehouse space at Centergate. Carnival’s tenant improvements began in August. The cruise line is scheduled to move into the park at the end of the year. Fairchild Partners is credited with negotiating the lease before Flagler took over the property management, according to sources familiar with the matter. Jose Juncadella, principal at Fairchild Partners, was not immediately available for comment.
Miami International Freight Solutions (MIFS) leased 84,000 square feet of warehouse and office space at Centergate. A freight forwarder, MIFS leverages the property’s location with access to all major thoroughfares. MIFS was on a month-to-month lease when Flagler assumed management, according to sources familiar with the matter.
Finally, Electronic Transaction Consultants Corporation, a toll collection solutions and services provider, leased 15,000 square feet of executive office space. The firm moved into the space in the second quarter. Swanson says the landlord offered typical market concessions, including free rent.
“The property was being looked at for new development potential and the owner had entertained the idea selling the building,” Swanson says. “But we positioned it as a lease product. The land is there. In the long-run we know that land will add value to the owner. In the short-run it doesn’t.”
Located at 6301 East 10th Ave. in Hialeah, Fla., Centergate at Gratigny offers one million square feet of space, including executive offices, climate-controlled manufacturing and light assembly space, and distribution space. The 47-acre property also has 27 acres of land available, which can accommodate an additional 650,000 square feet of development.
“Centergate at Gratigny is a very strategic location,” Wayne Ramoksi, executive director at Cushman & Wakefield in Miami, tells GlobeSt.com. “There aren’t any speculative bulk distribution projects being built right now and there aren’t any on the boards to my knowledge. There is an existing inventory that’s currently on the market and slowly it’s being absorbed. My take is that Centergate will be one of those properties over the next couple of years where space will be absorbed.”
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