The Real Deal Miami

Prudential takes out $39M loan on Hialeah development site

Land is eyed for future 630,000-square-foot project

February 12, 2016 02:15PM
By Sean Stewart-Muniz

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An aerial view of the Centergate at Gratigny distribution center in Hialeah and the attached development site

An aerial view of the Centergate at Gratigny distribution center in Hialeah and the attached development site

New Jersey insurance giant Prudential Financial just took out a $39 million mortgage on an industrial development site in Hialeah.

The loan, issued by Regions Bank, covers 27 acres of vacant land at 5801 Northeast 10th directly next to the one-million-square-foot Centergate at Gratigny distribution center, according to Miami-Dade property records.

A rendering of the potential new 630,000-square-foot facility

A rendering of the potential new 630,000-square-foot facility

Prudential’s real estate arm bought the land when it paid an affiliate of Barclays Capital Real Estate nearly $96 million for both the development site and its neighboring distribution center.

According to a listing when the property first sold, Prudential’s 27 acres are slated to become a new 630,000-square-foot industrial complex.

Rental rates at the existing center, which was built in 1999, hover around $7 per square foot annually. A LoopNet listing for the property says 602,000 square feet are available.

Prudential’s real estate division had a slew of big-ticket transactions in South Florida last year. The company paid $83 million for a trophy office tower in Coral Gables, and sold another pair of office towers in West Palm Beach for a whopping $246 million.

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