The Real Deal Miami

PriceSmart pays $46M for new Flagler Station facility

PriceSmart will move into the new 330,000-square-foot facility in March
By Katherine Kallergis | January 31, 2017 04:30PM

Flagler Station land. Inset: PriceSmart CEO Jose Luis Laparte

Updated, Feb. 1: PriceSmart, a publicly traded warehouse chain and operator of membership warehouse clubs, paid $45.56 million for the site of its new Medley facility.

Records show Section 31 Holdings LLC, an affiliate of Florida East Coast Industries subsidiary Flagler Global Logistics, sold the 18.6-acre site at 11255 Northwest 106th Street. PriceSmart financed the deal with a $35.7 million loan from Union Bank.

Flagler Global Logistics is the developer behind Flagler Station, the three-phase industrial park at 10800 Northwest 100th Street. PriceSmart contracted Flagler to build a 330,000-square-foot facility at Flagler Station III in late July, and announced it would keep 100,000 square feet at Flagler Station II for refrigerated and frozen space.

The warehouse chain, the largest operator of such clubs in Central America and the Caribbean, hired Transwestern to sublease the remaining 260,000 square feet for $8.25 per square foot. PriceSmart will move into the new building, with 30,000 square feet of office space and spots for an additional 102 trailers, in March, according to Transwestern.

The last phase of Flagler Station will be the Class A distribution center with a planned delivery date of the second quarter of next year. Freight company Gap Forwarding also leased space at Flagler Station III.

Transwestern senior managing directors Ben Eisenberg and Walter Byrd, senior vice president Thomas Kresse, and senior associate Carlos Gaviria represented PriceSmart in the sale of the new facility. Flagler Global Logistics was represented in-house by Dan Marcus, executive vice president of real estate development, and Chris Sutton, vice president of development.