Key Takeaways
- • Prologis divested three fully leased Broward County warehouses in Davie for $53.1 million ($267 per square foot), reducing its South Florida industrial footprint in a softening market environment.
- • Arnet Pharmaceuticals affiliate acquired the 12.3-acre Westport Business Park complex and secured $37 million in financing from TD Bank; Arnet occupies 50% of the fully leased property under a lease extending to 2035.
- • Miami-Dade industrial vacancy rates have deteriorated to 5.5% in Q3 2025 versus 4.6% year-over-year, reflecting broader market softening that prompted the strategic asset sale.
- • Prologis, led by CEO Hamid Moghadam, has executed multiple South Florida transactions within 12 months—including a $17 million airport-adjacent site sale to Miami-Dade County in January and a $112 million acquisition spree near Miami International Airport in 2024.
- • The sale represents a $37.2 million premium over the property's $15.9 million acquisition price in 1990, though pricing per square foot reflects current market headwinds in the regional industrial sector.
Summary
Prologis, the San Francisco-based industrial real estate investment trust, completed the disposition of three fully leased warehouses in Davie, Florida for $53.1 million, marking a strategic retreat from its South Florida industrial portfolio amid market softening. The transaction involved the 12.3-acre Westport Business Park complex located at 2501 to 2555 Davie Road, which traded at $267 per square foot. The buyer, an affiliate of Arnet Pharmaceuticals led by CEO Jose Tabacinic, financed the acquisition with a $37 million loan from TD Bank.
Arnet Pharmaceuticals, a Davie-based manufacturer of vitamins, minerals, amino acids, and herbal supplements, holds occupancy of approximately 50% of the complex under a long-duration lease agreement expiring in 2035. The fully leased status of the asset underscores the quality of the income-producing property, even as regional market conditions deteriorated. The transaction price reflected a $37.2 million increase from Prologis's original $15.9 million purchase price in 1990, though the per-square-foot valuation signals the pressure facing industrial real estate valuations in the current cycle.
Regional market indicators corroborate the timing of the sale. Miami-Dade County's industrial vacancy rate climbed to 5.5% in the third quarter of 2025, compared with 4.6% during the same period in 2024, according to Colliers data. This deterioration reflects broader softening in the sector and likely influenced Prologis's decision to monetize the asset while maintaining strong leasing characteristics.
Prologis has maintained active capital deployment in South Florida despite market headwinds. In January 2025, the firm sold a 3.4-acre industrial site adjacent to Miami International Airport to Miami-Dade County for $17 million, with Prologis agreeing to demolish four warehouses on the property. Conversely, during 2024, Prologis deployed $112 million for two airport-proximate industrial properties—a $57 million acquisition of a 157,200-square-foot facility in Doral and a $55 million purchase of the former TracFone Wireless headquarters near Doral, which management plans to redevelop into warehouse space. These transactions reflect Prologis's selective approach to South Florida industrial real estate, balancing portfolio optimization with opportunities in high-demand logistics corridors.
Arnet Pharmaceuticals, a Davie-based manufacturer of vitamins, minerals, amino acids, and herbal supplements, holds occupancy of approximately 50% of the complex under a long-duration lease agreement expiring in 2035. The fully leased status of the asset underscores the quality of the income-producing property, even as regional market conditions deteriorated. The transaction price reflected a $37.2 million increase from Prologis's original $15.9 million purchase price in 1990, though the per-square-foot valuation signals the pressure facing industrial real estate valuations in the current cycle.
Regional market indicators corroborate the timing of the sale. Miami-Dade County's industrial vacancy rate climbed to 5.5% in the third quarter of 2025, compared with 4.6% during the same period in 2024, according to Colliers data. This deterioration reflects broader softening in the sector and likely influenced Prologis's decision to monetize the asset while maintaining strong leasing characteristics.
Prologis has maintained active capital deployment in South Florida despite market headwinds. In January 2025, the firm sold a 3.4-acre industrial site adjacent to Miami International Airport to Miami-Dade County for $17 million, with Prologis agreeing to demolish four warehouses on the property. Conversely, during 2024, Prologis deployed $112 million for two airport-proximate industrial properties—a $57 million acquisition of a 157,200-square-foot facility in Doral and a $55 million purchase of the former TracFone Wireless headquarters near Doral, which management plans to redevelop into warehouse space. These transactions reflect Prologis's selective approach to South Florida industrial real estate, balancing portfolio optimization with opportunities in high-demand logistics corridors.
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