SoMi Industrial Portfolio OM

SOUTH MIAMI INDUSTRIAL PORTFOLIO | EXECUTIVE SUMMARY

Scale and Synergy

Strong Demand and Limited Supply

The South Miami Industrial Portfolio represents a unique opportunity to aggregate a critical mass of industrial assets in a gateway market with high barriers to entry. Of 11 individual buildings, 10 are located within a tight industrial node flanked between South Dixie Highway and Florida’s Turnpike. Those 10 buildings represent 18.0% of all industrial space (buildings over 10,000 SF) in that industrial node. The ability to control roughly 400,000 SF of small bay industrial buildings (including the potential for a 30,972 SF building on a development-ready pad) will allow new ownership incredible leverage to grow rental rates and benefit from operational efficiencies that result from the Portfolio’s economies of scale.

The Miami-Dade Industrial market is one of the tightest and most fundamentally sound in the entire country, with an overall vacancy rate of 4.4% at the end of third quarter, 2016, due in large part to land constraints, population growth and its strategic position as a gateway market. The South Dade submarket finished the quarter with an even lower vacancy of 3.1%. Demand in the submarket is being driven by steady population growth, residential development spurred by the desire for more affordably priced living options, and entrepreneurial activity focused on delivering goods and services to this growing population base. Moreover, while there are bulk distribution warehouse projects under construction in primary submarkets surrounding Miami International Airport, much of which have been pre-leased to large format tenants, there is currently no construction of industrial product underway in the supply-constrained South Dade submarket. As a result, these dynamics are expected to apply upward pressure on rental rates.

“Plug-and-Play” IndustrialOperation

The Seller is offering a “turn-key” industrial operation including a full-time property manager and on- site maintenance professional who would remain in place post-closing. The retention of key personnel intimately familiar with the Properties would allow an investor a seamless ownership transition with minimal disruption or oversight responsibility, which in turn would positively impact the investor’s return on equity.

Mak 3

Mak Too

SW 106th Avenue

As the only road leading to The Home Depot, SW 106th Avenue provides tenants at Mak Too and Mak 3 prime frontage and allows for quasi-retail uses and higher rental rate potential.

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