Commercial real estate investment firm Cofe Properties just paid $32.5 million for a portfolio of warehouses in Hialeah.
The deal includes 41 warehouses totaling roughly 376,000 square feet in two areas: west of the Red Road and north of the Hialeah Expressway, and west of 16th Avenue and north of Okeechobee Road.
Cofe Cix West Hialeah LLC, an affiliate of Cofe Properties, paid nearly $90 per square foot for the portfolio. The seller is an affiliate of the Boston-based asset manager, TA Realty. The company purchased the portfolio in 2006 for $24.1 million.
Douglas Mandel and Benjamin Silver of Marcus & Millichap’s Institutional Property Advisors brokered both sides of the deal. Mandel said in a statement that nearly all of the tenants’ leases are expected to increase 4.5 percent annually, triple net.
The buildings range from about 4,000 square feet to 28,000 square feet, with a majority of tenants made up of mom-and-pop business, like cabinet makers, manufacturers and some auto shops, Mandel said.
The portfolio sale is another example of recent investment in South Florida’s industrial market. In December, Blackstone Group announced it will buy a 22 million-square-foot industrial portfolio for $1.8 billion, 1.1 million square feet of which will be in South Florida.
In 2016, Cofe paid $16.6 million to purchase the Webster Business Park, near Miami International Airport, from TA Realty.