Interest rates are rising, recession fears abound and some property types are experiencing a decline in investment sales. None of this concerns South Florida’s industrial market.
Case in point: Treo Group sold an industrial property in Hialeah at 1100 East 41st Street, as well as at 4005, 3965 and 3925 East 10th Court, for $19 million, or more than double what the Miami-based firm had paid for the real estate five years ago, according to records. An entity led by Yoseph Kotler, who lists a Wimauma address in Florida’s Hillsborough County, was the buyer.
Kotler’s entity took out a $12.4 loan on the property with a five-year term, with the possibility of a five-year extension, from Banesco USA.
Built at various times from the 1950s to the ‘70s, the warehouses are adjacent to each other and total more than 150,000 square feet across 5.9 acres, property records and LoopNet show. Treo had paid $7.2 million for the property in 2018.
In its more recent ventures, Treo has focused on south Miami-Dade County. It has partnered with Mas Group and AJP Ventures on the development of a mixed-use project with 196 apartments for residents who are 55 and older. South of there and in Florida City, Treo and Sergio Pino, of Century Homebuilders Group, want to build the 131-townhouse Century Parc Villas West with commercial space, possibly a hotel and an assisted living facility.
Otto Boudet-Murias is principal at Treo.
Hialeah, a largely residential community that also has a healthy portion of Miami-Dade’s warehouse supply, has experienced some industrial investment sales activity. In June, Ares Management paid $62 million for a pair of warehouses that were under construction at the time at 410 West 104th Street and on an adjacent lot.
Terreno Realty bought two new, fully leased buildings at 4281 and 4341 West 108th Street in Countyline Corporate Park for $73.2 million February.
In the third quarter, South Florida’s industrial market continued to prosper. Miami-Dade’s average asking increased to $14.35 per square foot, up from $8.84 year-over-year, according to JLL. The vacancy rate hit a record low of 1.8 percent.