FedEx's downtown Miami distribution center comes with a $37 million price tag.
Long Island-based developer Lalezarian Properties pocketed the colorful, six-story, 110,000-square-foot building at 200 S. Miami Ave. in a $37.25 million deal, Cushman & Wakefield announced Tuesday.
The New York group paid $31 million an acre, or about $712 per square foot of land, for the 1.2-acre site.
The building serves as FedEx's last-mile warehouse and retail packing center serving downtown Miami. The global shipping giant will retain its space for the next decade at least. FedEx just signed a 12-year, triple-net lease on the property, according to a news release.
A Cushman & Wakefield brokerage team led by vice chairman Robert Given and senior managing director Troy Ballard represented the seller, Miami-based investment company Fifteen Group. The duo worked with Mike Davis, Travis Trautvetter, Rick Brugge and Michael Lerner to market the property.
Colliers International executive vice president Gerard Yetming also worked on the deal.
The property was developed in 1999 as a built-to-suit facility at the corner of South Miami Avenue and Second Street wedged between two Interstate 95 ramps. The purple, gray and white concrete-block building offers 16-foot ceiling heights and about 200 parking spaces.
The asset last traded for $19 million in July 2014.
"This is a highly desirable, urban-core location with in-place entitlements for high-density projects," said Justin Toal, chief investment officer at Fifteen Group. "In the interim, the new owner has an investment-grade tenant."
The buyer has a number of development options under the Miami21 zoning code.
The property can continue operations as a FedEx facility with its long-term, credit tenant or it can be redeveloped into nearly 2 million gross feet of mixed-use space. Other options include an 80-story residential tower with 1,200 units. It also could also be repurposed for other commercial uses such as office, retail or storage space.
Any redevelopment would likely take place beyond FedEx's lease.
"Covered land opportunities in South Florida are in extremely high demand," Given said. "200 South Miami Avenue provided investors with the opportunity to acquire an asset with excellent short- and long-term prospects. This unique combination of exceptional status quo performance along with outstanding redevelopment and reuse options drove investor interest and value."