Newmark announced today it represented the buyer in the $24 million acquisition of a 20-acre industrial site in Miami. The deal paves the way for a new infill development project, to be named Gratigny Logistics Park, in a highly sought-after market known for its scarcity of developable land.
Panattoni Development Company (PDC) purchased the property at 3000 NW 123rd Street from a NY-based financial services firm. The property is currently home to a vacant dairy plant. PDC plans to immediately redevelop the site with new speculative warehouse space, adding to its growing industrial portfolio in the submarket. Just east of the subject property, PDC is completing construction at Eastview Commerce Center, a new $100 million, 800,000-square-foot Class A business park at NW 24th Avenue and NW 119th Street. The project is more than 50% pre-leased and is expected to become one of South Florida’s premier “last-mile” hubs.
Newmark’s Executive Managing Directors Nick Wigoda, SIOR, and Steve Medwin, SIOR, CCIM, represented the buyer and CBRE represented the seller.
“It’s no secret that Miami’s industrial market is land-constrained, with the e-commerce explosion and tremendous demand among tenants creating opportunities for developers in South Florida,” said Wigoda.
“This site has been underutilized for many years and was aggressively pursued by multiple institutional developers,” said Medwin.
“We are excited to acquire this rare infill site that will allow us to develop a state-of-the-art industrial product for expanding tenants in South Florida,” said Hayne Hamilton, Senior Development Manager for Panattoni Development Company.
According to Newmark Research, Miami’s industrial sector saw a slight correction during third quarter, with a more balanced trend between supply and demand. Although market demand appeared to be moderating from previous robust quarters, this is more representative of a balanced quarter with pending occupations of preleased space in new industrial buildings projected to take place over the next two quarters. Healthy pre-leasing of these new buildings is projected to occupy 45.0% and should lessen their impact on vacancy, which will likely continue to tick upward as projects are completed.
About Panattoni Development Company
Founded in 1986, Panattoni Development Company, Inc. is one of the largest privately held development companies worldwide. Panattoni is headquartered in Newport Beach and operates from 24 offices in the US, Canada, and Europe. Since inception, Panattoni has developed more than 340 million square feet of space including more than 118 million square feet of build-to-suit projects. Panattoni has developed industrial, office, and flex facilities in 278 cities located in 29 states and 9 countries.
Newmark (“Newmark”), operated by Newmark Group, Inc. (“Newmark Group”) (NASDAQ: NMRK), is one of the world’s leading and most trusted commercial real estate advisory firms, offering a complete suite of services and products for both owners and occupiers. Together with London-based partner Knight Frank and independently-owned offices, Newmark’s 16,000 professionals operate from approximately 430 offices on six continents. Newmark’s investor/owner services and products include investment sales, agency leasing, property management, valuation and advisory, diligence, underwriting, government-sponsored enterprise lending, loan servicing, debt and structured finance and loan sales. Occupier services and products include tenant representation, real estate management technology systems, workplace and occupancy strategy, global corporate services consulting, project management, lease administration and facilities management. For further information, visit www.ngkf.com. Newmark Group is a publicly traded subsidiary of BGC Partners, Inc. (“BGC”) (NASDAQ: BGCP), a leading global brokerage company servicing the financial and real estate markets.
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