CBRE Capital Markets Matches L&B Realty Advisors with Butters Construction & Development for Airport North Project
Miami, FL – January 15, 2012 – (RealEstateRama) — Butters Construction & Development is starting the new year with another announcement for the largest new industrial development in Miami-Dade County. Butters has partnered with L&B Realty Advisors to develop a 918,000-square-foot, Class A bulk distribution industrial park on a 44.5-acre site at NW 87th Avenue and NW 80th Street in Medley, Florida. Butters retained CBRE to procure a well-capitalized and institutional equity partner to acquire the site and develop the park. CBRE identified L&B Realty Advisors, and their client, the State of Florida, as the equity partner for the deal.
Following the success of Miami International Tradeport (a 126-acre, 1.6 million-square-foot industrial development project announced at the close of 2011 with Liberty Property Trust), the closing of Airport North at the end of December 2012 marks the second consecutive year in which CBRE and Butters strike the largest industrial development deal in Miami-Dade County.
Airport North Industrial Park will comprise four institutional-quality, single and multi-tenant industrial buildings. The project will include rear-load and cross-dock facilities ranging from 96,725 square feet to 322,840 square feet, featuring building depths of 205’ to 300’, 120’ minimum truck courts, 30’ clear height and Early Suppression, Fast Response (ESFR) fire sprinkler systems.
The project is budgeted at an all-in development cost of $75 million ($80 PSF). Site development is to commence first quarter 2013, and vertical construction is to commence in the second quarter. Expected value upon final completion in 2015 is forecast to approach $100 million. The project will generate approximately $3.5 million in fees for Miami-Dade County, hundreds of jobs, and Butters will build a $1 million new section of NW 80th Street.
The 21-year-old Butters organization, which has built more than 10 million square feet of commercial space in South Florida, is capitalizing on Miami-Dade County’s robust and nation-leading fundamentals. With a 5.8% vacancy rate, Miami ranks sixth-lowest in the nation and has the highest occupancy of any market in the eastern United States. Further, Miami market rents rose 12% from fourth quarter 2011 to fourth quarter 2012, during which time 2.5 million square feet of industrial space was absorbed.
“Miami is quickly becoming one of the top industrial gateway cities in the United States and is considered, along with Southern California, as one the most desirable markets, where all the institutional real estate owners must have a presence,” said Malcolm Butters. “This site is strategically located near the Palmetto Expressway and Okeechobee Road, thus enabling phenomenal access to the rest of the County and beyond.”
After putting the Airport North site under contract, Butters began the process of re-zoning and entitling the land as well as master-planning it for development. Butters hired CBRE to find an institutional partner that would share in the vision and help capitalize the development.
According to Christian Lee, Vice Chairman of CBRE, L&B Realty Advisors was the best fit for the deal from among a number of well-capitalized institutional suitors. Lee said: “L&B not only had the confidence that the demand for the product will be there once completed, but was also comfortable that Butters would be able to successfully complete the project on budget.”
Lee and Riley led the transaction for CBRE, assisted by Charles Foschini, Vice Chairman, Debt & Equity Finance, Devin White, Vice President, Industrial, David Albert, Senior Vice President, Industrial and Jose Lobon, Associate.
About L&B Realty
L&B Realty Advisors is an employee-owned, SEC-registered real estate investment advisor. Since 1965, L&B has provided real estate investment management services to institutional investors and family offices. With $5.4 billion under management and 46 years experience, L&B has a proven track record of successfully acquiring, managing, and disposing real estate on behalf of our clients.
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, FL, 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. For more information, go to www.butters.com
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 2011 revenue). The Company has approximately 34,000 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 our Web site at www.cbre.com.
Communications & Media Manager, FL
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