In a sign of a lagging suburban office market in Miami-Dade County, Hamilton Development is planning to redevelop two distressed buildings into a pair of warehouses.
An affiliate of Nashville-based Hamilton, led by Whitfield Hamilton, paid $20.4 million for an office building in the Flagler Station business park near Doral via a deed-in-lieu of foreclosure transaction, records and real estate database Vizzda show. Salt Lake City, Utah-based Bridge Investment Group sold the 126,224-square-foot building at 9725 Northwest 117th Avenue.
Matthew McCormack with JLL brokered the deal.
In May, Bridge Investment also sold to Hamilton a 124,227-square-foot office building at 10451 Northwest 117th Avenue in a $21.1 million deed-in-lieu of foreclosure deal and a 156,928-square-foot office building at 9675 Northwest 117th Avenue for $20.8 million.
Bridge Investment bought the three adjacent office properties for a combined $85.8 million in 2018, financing the purchase with a $64.6 million loan from a Wells Fargo affiliate, records show. In May, Wells Fargo filed a foreclosure complaint against the Bridge Investment entities that owned the 24.4-acre assemblage, alleging default on a $59.2 million mortgage.
As part of its purchase for all three buildings, Hamilton assumed the mortgage, records show.
Hamilton plans to tear down the buildings at 9725 Northwest 117th Avenue and at 10451 Northwest 117th Avenue, and replace them with two industrial facilities spanning more than 300,000 square feet, a press release states. The office building at 9675 Northwest 117th Avenue will remain as part of the new development that will be called Flagler Logistics Center.
Hamilton plans to break ground on the warehouses next year and expects to complete the project in 2027, the release states.
The firm is also planning an office-to-industrial conversion in Kendall, a suburban unincorporated neighborhood in southwest Miami-Dade. In August, Hamilton paid Baptist Health South Florida $12.3 million for the office building at 14100 Southwest 136th Street with plans to redevelop the site into a 113,900-square-foot warehouse complex.
