RREEF America buys Hialeah industrial property for $178M

Centergate at Gratigny totals 1.6M sf

RREEF Property Trust’s CEO W. Todd Henderson and Centergate at Gratigny
RREEF Property Trust’s CEO W. Todd Henderson and Centergate at Gratigny

An affiliate of Deutsche Bank bought the Centergate at Gratigny in Hialeah for $178 million, marking South Florida’s largest industrial sale of the year to date.

RREEF America bought the three-building property at 5801 and 6301 East 10th Avenue from Newark, New Jersey-based PGIM, records show.

Centergate at Gratigny totals 1.6 million square feet and has two newly constructed distribution buildings totaling 602,657 square feet, along with a 978,164-square-foot-warehouse.

The first phase of the project, the 978,164-square-foot-warehouse, was built in 1999. The warehouse last sold for $78 million in 2015.

The second phase, the two 602,657-square-foot distribution buildings, were built in 2016.

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CBRE Capital Markets team of Chris Riley, Christian Lee, and José Lobón represented the seller in the deal.

The property is anchored by Bullet Line, a supplier of low-price promotional products. Other tenants include Carnival Cruise Lines and Veritiv, a business-to-business distributor of packaging, print and publishing products.

The deal shows continued strong demand for South Florida’s industrial properties by institutional investors. The market has remained one of the area’s strongest performing asset classes due to the rise of e-commerce.

In Miami Dade-County, vacancy rates held steady at 4 percent in the second quarter compared to the same period of 2018, even amid 725,000 square feet of newly completed construction, according to a Colliers International South Florida report.