Northwood Investors is wading into South Florida’s booming industrial market after paying $46.5 million for a Doral warehouse.
An affiliate of Northwood, a Denver-based real estate investment firm, purchased a 201,827-square-foot facility at 10000 Northwest 15th Terrace, records and real estate database Vizzda show. The deal breaks down to $230 a square foot.
A JLL team led by Britton Burdette and Trent Agnew brokered the deal, which was part of a $160 million portfolio purchase that also includes two distribution centers in Texas and Georgia leased to Home Depot and furniture chain Havertys, respectively. The Doral warehouse is the headquarters of main tenant Monat Global, a hair and skincare products company, a press release states.
The seller, an affiliate of Hartford, Connecticut-based USB Realty Investors, paid $26 million for the 12-acre Doral industrial site in 2012, records show. The building was completed in 2000.
Northwood, led by CEO John Kukral, has primarily focused on hospitality real estate assets in Florida. The company owns Cheeca Lodge & Spa in Islamorada, Tranquility Bay Beachfront Resort in Marathon, Parrot Key Hotel & Resort and The Marker Hotel in Key West and the Naples Grande Resort in Naples, Northwood’s website shows.
In 2021, Northwood and Wharton Equity Partners sold a development site approved for a mixed-use project in Bay Harbor Islands. Coconut Grove-based Terra, led by David Martin, acquired the property at 1177 Kane Concourse for $31.5 million. In 2020, Northwood and Wharton won town approval for a development with 90 condos, 98,000 square feet of office space and 14,900 square feet of commercial space.
Doral is among the highest performing industrial markets in South Florida. The average asking rent in Doral hit $18.67 per square foot in the third quarter, compared to $16.42 a square foot for Miami-Dade County overall, a recent Colliers report shows. Institutional investors are on the hunt for properties to build new warehouses.
In August, Prologis paid $54.5 million for a warehouse near Doral leased to Verizon subsidiary TracFone. The firm plans on redeveloping the building into larger, modern industrial spaces.