A Chilean company is developing self-storage units as part of its first U.S. project. But this isn’t just any self-storage project. The mixed-used development also features office space, a kitchen fixture showroom and a go-kart track.
In January 2013, Santiago, Chile-based Red Megacentro bought a 171,000-square-foot industrial facility at 8600 NW South River Drive in Medley, FL, a Miami suburb. The purchase price was $7 million. Red Megacentro operates several self-storage facilities throughout Chile under the name Mi Bodega.
Redevelopment of the facility, previously occupied by Regal Kitchens, is nearing completion. The complex, called Megacenter Palmetto (see artist’s rendering above), is more than 75 percent leased, according to commercial real estate firm Colliers International South Florida.
The property will feature 30,000 square feet of self-storage as well as 80 executive office suites.
When customers are done filling up their storage units, they’ll be able to race at K1 Speed. The indoor go-kart racing operation will occupy 82,200 square feet. Dax International Brokers Inc., a kitchen fixture showroom, has leased 19,500 square feet.
Pablo Wichmann, CEO of the Chilean company’s U.S. subsidiary, Megacenter Business Parks, told Commercial Property Executive that he’s looking for a few more business startups and flex-space tenants to fill the remaining space at Megacenter Palmetto.
Mort Fetterolf, director of industrial services at Colliers International South Florida, said the developer originally planned to dedicate half of the building to self-storage. But that plan changed when the opportunity arose to lease space to the go-kart company.
“They are pretty adaptable, but they are interested in more self-storage,” Fetterolf said of Megacenter Business Parks.
Megacenter has tapped Fetterolf’s firm to find more acquisition targets around the U.S. The company will consider existing self-storage properties as well as redevelopment sites, Fetterolf said.