Miami Turnpike Industrial Portfolio

12176-12198, 11900-11990, 11905 SW 128 St., Miami, FL, 33597, US

Description

Jones Lang LaSalle, Inc. (“JLL”) has been exclusively retained to market for sale the Miami Turnpike Industrial Portfolio (the “Portfolio” or “Miami Turnpike”) – a 100% leased, 218,621 SF last-mile logistics portfolio strategically positioned along Florida’s Turnpike and the Don Shula Expressway in the high-barrier South Dade submarket of Miami, Florida. The Portfolio benefits from proximity to key logistics infrastructure such as Miami International Airport, PortMiami, and Tamiami Airport.

The Portfolio is 100% leased to nine national and regional tenants with an average tenure of 10.5 years and strong historical occupancy. The portfolio’s longstanding success is underpinned by its above-market building specifications including 1,145 linear feet of highway frontage, 14,400A 120/208V-277/480V 3-phase heavy power, 18’-25’ clear heights, four-sided loading capabilities, 100% dock-high loading, 67% climate-controlled space, versatile bays ranging from 4K-29K SF, and former rail-service with reactivation optionality. The Property is one of only few institutional-quality assets in the submarket offering above-market specifications and differentiated product.

The Portfolio features a 2.6 year weighted average lease term (“WALT”) and a 31%+ un-trended mark-to-market (“MTM”) opportunity. Additional value add opportunities include: conversion to NNN lease structures, monetization of the ±1.4 acres of outdoor storage/expansion space, installation of billboard signage (±$10K estimated monthly revenue) and potential Shallow-Bay condo conversion ($400+ PSF), providing multiple pathways to strong NOI growth and exit strategy optionality.

The Portfolio benefits from a strategic location in the heart of Southwest Dade, Miami’s tightest industrial market, posting the MSA’s lowest vacancy rate at 2.1% and sustaining sub-3% vacancy for over a decade. Future rent growth is protected by severe supply constraints which position existing assets in the submarket for longterm rent growth and capital appreciation. The Portfolio is also expected to benefit from the Don Shula Expressway (SR 874) extension and on-ramp improvements, which will enhance accessibility to I-75, I-95, and the broader South Florida logistics network while reducing congestion and drive times.

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Attributes

Number of buildings

Building area net

20,311 m²

Land Area

11.7 Acres

Occupancy

100%

WALT

2.6 years

Mark-to-Market

31%+

5-Year NOI Growth

49%

NRA Backed by IG Credit

18%

Development Parcel

0.8 Acres

Media

Investment Highlights

UNIQUE PORTFOLIO COMPOSITION ACQUISITION AND EXIT STRATEGY OPTIONALITY

The Seller is open to receiving offers on the entire portfolio or individual components:
Shallow-Bay – A 64,048 SF shallow-bay industrial asset, 100% leased to 4 tenants with 1.7 years WALT, and 17% MTM.
Industrial Center – A 154,573 SF light industrial asset, 100% leased to 5 tenants with 3.0 years WALT, and 40% MTM.
Self-Storage Development Site – A 0.8-acre site which can be developed to a self-storage facility or leased as industrial outdoor storage space.

ATTRACTIVE VALUE PROPOSITION POISED FOR LONG-TERM SUCCESS WITH STRONG, PROVEN CASH FLOW

Offered at a significant discount to recent South Florida sales comparables ($395+ PSF) and replacement cost ($300+ PSF).
100% leased with actionable 2.6-year WALT and 3.5% weighted average annual rent escalations.
Average tenure of 10.5 years across 9 tenants with strong historical occupancy.

SUBSTANTIAL VALUE-ADD OPPORTUNITY WITH MULTIPLE PATHWAYS TO INCREASE NET OPERATING INCOME

31%+ un-trended MTM opportunity with 67% of the NRA rolling by the end of year 3 of the projection allowing for near-term value creation.
Ability to transition existing or new tenants to a NNN lease structure reduces landlord responsibility and unlocks 49% 5-Year and 86% 10-Year NOI growth.

INSTITUTIONAL-QUALITY SPECIFICATIONS WITH RARE & VERSATILE ABOVE-MARKET IMPROVEMENTS PROVIDE DIFFERENTIATION FROM THE COMPETITVE SET

Light-industrial/shallow-bay product with 100% dock-high loading (1.2 per 10K SF) and 18’-25’ clear heights.
Diverse bay sizes ranging from 4K SF to 29K SF with four-sided loading,
Average bay size of 12K SF caters to the market’s fastest-growing and highest-velocity user segment while commanding premium rental rates.

STRATEGIC INFILL MIAMI LOCATION PRIMED FOR LAST-MILE SFL LOGISTICS WITH FLORIDA’S TURNPIKE FRONTAGE & QUICK ACCESS TO KEY LOGISTICS INFRASTRUCTURE

1,145 linear feet of Don Shula Expwy/Florida Turnpike frontage with direct access and enhanced infrastructure.

EXTREME HIGH BARRIERS TO ENTRY WILL CONTINUE TO DRIVE RENT GROWTH AND CAPITAL APPRECIATION

SW Dade is one of the premier and highest barriers-to-entry industrial pockets in South Florida evident by a tight 2.1% vacancy rate (540 BPS lower than the overall MSA), ZERO product under construction, and only 217K SF delivered since 2021.