Closed! The Industrial Team at ComReal announces the successful sale of the 39,000 SF warehouse facility at 595 E 10th Avenue in Hialeah, Florida. The seller, 595 Realty Corp, was represented by Patrick McBride, Esq. and Edward Redlich, SIOR, CCIM. CarSafe Storage purchased the warehouse for $3,350,000.
The property was extensively marketed for lease prior to the seller testing the sale market. Our team recognized the strength of the market, lack of buildings for sale, and advised the seller that the building would garner far greater attention on the sale side as prospects prefer to own in this neighborhood.
Once listed for sale, the property gained a ton of attention and we quickly had multiple offers. As we were about to finalize a purchase contract in early March with a buyer in the food industry, specifically in restaurant service, the China virus pandemic hit, and the buyer was forced to walk away at the last minute. In April, after the initial shock of the pandemic wore off yet still in the depths of the uncertainty and the economic crisis created by the virus, we were able to create a bidding war with multiple offers. This is a testament to the strength of the Miami industrial market.
In fact, the property sold for approximately $112 psf on a footprint basis, as the property features a 6,000 SF concrete mezzanine and 3,000 SF of second story office space. The buyer plans multiple improvements to the building, including a new roof, which makes the purchase price that much more impressive. “This property sold at the top of the market, and perhaps set a new bar in the neighborhood on a per square foot basis when you factor in the second floor mezzanine area and the deferred maintenance needed to make the property suitable for a new user” said McBride.
The eastern portions of Hialeah and the East Airport market have seen quite the impressive growth in both sale prices and rental asking rates over the past five years. This sub-market is becoming increasingly attractive to both users and investors as e-commerce continues to drive the need for in-fill development in areas located as close to population centers as possible. Owners in the area should take note that there will be a large volume of pent up demand from users who have contractual leases set to expire or who were looking to purchase a facility in 2020 for their operations but have now been delayed.
Give us a call if you have a warehouse coming available or you would like to further explore the options available to you in the market!