UPS PICKS UP MIAMI DEVELOPMENT SITE FOR DISTRIBUTION WAREHOUSE: $31M

The Real Deal by Katherine Kallergis

Prologis has sold a 43-acre development site west of Miami International Airport to UPS for $31 million.

Records show UPS paid about $16 a foot for the property at 13200 Northwest 17th Street, which is slated to become a distribution warehouse. The land is approved for up to 5.3 million-square-foot warehouse with up to 495,000 square feet of retail space and 175,000 square feet of office space.

AMB Codina Beacon Lakes, a Prologis affiliate, bought the land as part of a bigger deal in 2003 for $7.3 million.

Prologis is the largest owner of industrial real estate in the world, but has recently sold a number of South Florida properties, including seven buildings in Broward and Palm Beach counties to Adler Kawa. Adler Kawa paid $38 million for the properties in Boca Raton, Delray Beach and Fort Lauderdale in March.

Industrial rents rose 9 percent in 2015, faster in the United States than anywhere else. Domestic industrial rents have risen 25 percent during the last three years, Prologis reported earlier this year, citing U.S. economic growth and few industrial vacancies in such logistics markets as South Florida and Atlanta.

In 2015, Prologis and Norway’s sovereign wealth fund announced they would pay $5.9 billion for KTR Capital Partners, which owned about 70 million square feet in 25 markets.