Prologis buys Medley warehouse for $23M
44K sf building is near West Okeechobee Road
Prolific logistics real estate investor Prologis bought a Medley warehouse for $22.6 million, marking continued appetite for industrial buildings amid a hot market.
The San Francisco-based real estate investment trust bought the property at 9401 Northwest 106th Street from K.D.D. Enterprises, led by Charles Largay, records show.
The 43,700-square-foot warehouse, developed in 1995, sits on an 8.6-acre lot, property records show.
Tenants include HVAC contractor Pyke Mechanical; audio and visual equipment rental company Total Audio & Visual Solutions; and Techno Rubber Industries, which manufactures products for the marina, auto, elevator and specialty vehicle industries.
The purchase comes amid a hot industrial market. It was the only property type to prosper last year during the pandemic. The growth continued this year, as the Miami-Dade County industrial vacancy rate dropped to 2.9 percent in the third quarter, down from 3.4 percent in the second quarter, according to Colliers. The average asking rent for warehouses increased to $10.72 a square foot in the third quarter, compared to $9.74 a square foot in the same period of 2020.
This has fueled investor appetite, including for warehouses that do not take up the entirety of a lot, such as the one in Medley that just sold.
In November, CenterPoint Properties paid $8.6 million for a Medley warehouse that covers a small portion of its lot. Deal broker Jose Sasson told The Real Deal at the time that buyers like having open industrial space because it can be used for storage or truck parking.
In other recent industrial deals, a joint venture between Banner Property Group and Apollo Global Management this month bought two cold storage warehouses in Miami-Dade for a combined $74 million.
Prologis, led by chair and CEO Hamid Moghadam, is one of the top industrial real estate builders in Miami-Dade. Its Beacon Lakes business park spans 436 acres in a northwest area of the county. In May, Prologis applied to add two 164,435-square-foot facilities at the park.
Publicly traded Prologis had $148 billion in assets under management in 2020.
In October, it sold two warehouses within the Weston Business Center for $110 million.