In one of the largest raw land transactions in metro Miami, since before the recession, Liberty Property Trust (NYSE:LRY) has acquired 126 acres in Medley and plans to build Miami International Tradeport. With 1.6 million square feet of new institutional-grade warehouse and distribution space, Miami International Tradeport (MIT) is expected to add $150 million in value to Miami-Dade County´s tax base and create 4,000 new construction jobs with 2,000 full-time jobs upon completion.
Butters Construction & Development, a Coconut Creek-based development and construction company, will oversee construction of the new park. CB Richard Ellis brokered the transaction.
Malvern, PA.-based Liberty, a real estate investment trust, paid $17.25 million to cement and concrete firm, Tarmac America, for the land that fronts Florida’s Turnpike, just south Okeechobee Road. The deal closed Thursday, Dec. 15, 2011.
“This acquisition marks our entrance into Miami-Dade County,” said Andy Petry, VP and city manager for Liberty. “We feel there is a tremendous opportunity for well-designed and located industrial product in Miami-Dade County, and we are excited to begin development and to grow our footprint in South Florida.”
Liberty is moving through the entitlement process for the site, which once housed a limestone quarry on part of it, with final zoning approval expected by early February. Liberty plans to start construction on the first wave of speculative, multi-tenant, distribution buildings next year. The project will be built in phases over the next five to seven years.
The vision for the property´s highest-and-best use was first conceived by Butters President Malcolm Butters and Butters Director of Acquisitions Adam Vaisman.
The 21-year-old Butters organization, which has built more 10 million square feet of commercial space in South Florida, was drawn to western Miami-Dade County by the rapidly improving fundamentals of the warehouse and distribution market. During the past year, vacancy rates in the county´s industrially rich areas west of Miami International Airport have steadily fallen and rents have risen, driven by robust cargo operations at MIA and expansion of the Panama Canal that will soon carry super-freighters into the Port of Miami.
“Miami is quickly becoming one of the top industrial gateways in the United States and is considered, along with Southern California, as one the uber-core markets, where all institutional real estate owners want to have a presence,” said Malcolm Butters. “This site was clearly one of the last large land tracts available in western Miami-Dade County for industrial development and will enable us to attract large users. There is currently no space available to industrial users seeking more than 500,000 square feet.”
After putting the Tarmac site under contract, Butters began the process of re-zoning and entitling the land as well as master-planning it for development. Butters hired CB Richard Ellis to find an institutional partner that would share in the vision and help capitalize the development.
According to Christian Lee, Vice Chairman of CBRE, Liberty Property Trust was the best fit for the deal from among a number of well-capitalized institutional suitors. Lee said: “Liberty not only had the confidence that the demand for the product will be there once completed, but also was comfortable that Butters would be able to successfully navigate the zoning and permitting process associated with a project of this size.” Lee and Chris Riley led the transaction for CBRE, assisted by Charles Foschini, Devin White, David Albert and Jose Lobon.
About Liberty Property Trust
Liberty Property Trust owns and manages 2.1 million square feet of office and industrial properties in South Florida. Headquartered in Malvern, PA, Liberty is dedicated to enhancing people´s lives through extraordinary work environments. The real estate investment trust (REIT) serves customers in the United States and United Kingdom through the development, acquisition, ownership, and management of superior office and industrial properties. Liberty´s 78 million square foot portfolio offers exceptional locations and flexible design to more than 1,900 tenants at nearly 700 properties. The company is a leader in the development of high performance green buildings. For more information please visit Liberty Propert Trust.
About Butters Group
Butters Construction & Development is part of the Butters Group, a fully integrated development, construction, realty and management firm founded in 1990. Based in Coconut Creek, Florida, the company has developed and constructed more than 10 million square feet of commercial space in South Florida and currently manages and leases 3.2 million square feet. The company´s clients and partners include Principal Life Insurance Co., Morgan Stanley, Fidelity Investments, KTR Capital Partners and Prologis. For more information go to Butters.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world´s largest commercial real estate services firm (in terms of 2010 revenue). The Company has approximately 31,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 300 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing, corporate services, property, facilities and project management, mortgage banking, appraisal and valuation, development services, investment management, and research and consulting. Please visit their website at CBRE.
