Miami Herald Relocation Hits Snag
The Miami Herald’s negotiations to relocate to part of 21 acres in Miami that are home to outgoing Bertram Yachts have stalled, and may not be salvaged.
As a result, it is unlikely to be the newspaper’s future home, according to several sources.
In fact, the Herald is returning to sites previously in the running, a reality that could refocus its energies into assets like the U.S. Southern Command in Doral.
Tere Blanca of Blanca Commercial Real Estate is leading the Herald’s site search.
A few issues may have contributed to the deal’s unraveling: Miami Herald parent McClatchy Co. may be facing underwriting challenges because of its B-level credit rating. Print media’s diminishing advertising revenue and the possibility that a speculative building would be built for the newspaper, only to have the newspaper leave before a debt is paid, does not inspire underwriting confidence without some money set aside as security, sources said.
Penalties required by the landlord if the build-to-suit for the Herald was not delivered on time might have also been a factor, as well as some of the chemical contamination on the site, according to sources.
The site was sold to Sweden-based Alecta last year, according to public records.
The property, now called Miami International Centre, covers more than a city block, including more than 400,000 square feet of manufacturing and marina facilities. There are 11 buildings, four of which run along the Tamiami Canal and include boat slip sheds.
Miami International Centre is directly east of the massive Miami Intermodal Center, a ground transportation hub designed to connect the public to Miami International Airport via tram, buses, rental cars and taxis.
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