Transwestern Senior Managing Directors Ben Eisenberg and Walter Bryd, Senior Vice President Thomas Kresse, and Senior Associate Carlos Gaviria executed this transaction on behalf of Terreno Realty Corp.
“Although this property was not for sale, it was highly desired by our client as it fit within Terreno’s investment parameters,” said Eisenberg. “While we knew we had to overcome a large hurdle, we structured a deal that would be advantageous for all sides.”
The acquisition provides Terreno with a fully leased, high-quality, multitenant building with an immediate return through in-place cash flow in a key market. At 4.4 percent, vacancy in Miami’s industrial market is at its lowest level since 2009 and rental rates are up from the previous quarter to $9.76 per square foot according to Transwestern’s recent market report.
“Excessive cap rate compression, lack of supply and strong demand continues to drive pricing to record levels,” continued Eisenberg. “With the tightening supply of assets on the market, creativity and market knowledge are the differentiating utilities driving deals.”
Transwestern has been retained to provide property management services. Led by Senior Vice President Andrea Lopez, this new assignment brings Transwestern’s Miami management portfolio for Terreno to 349,000 square feet.
Terreno acquires, owns and operates industrial real estate in six major U.S. coastal markets. The company targets functional, flexible, infill real estate where the nation’s largest consumer populations meet the highest-volume distribution points.
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