FedEx warehouse owner took a $36 million loss after interest rates jumped

A 236,976-square-foot distribution center in north St. Petersburg changed hands for $58.2 million on Friday. The sale represents a $36.3 million drop from the price paid five years ago. The buyer is WSRE CP Last Mile Investors LLC. The seller is MAPS 1950 102 Avenue LLC.

The property at 1950 102nd Avenue N. sits on 63 acres near Interstate 275. FedEx Ground has operated in the facility since it opened in 2017. The building features 61 dock-high loading doors and 30-foot ceilings. It also contains space for a potential 75,000-square-foot expansion. A deed recorded in Pinellas County confirms the transaction.

The previous owners were backed by Mirae Asset Global REIT, a South Korean investment company. That group purchased the site in November 2021 for $94.5 million from developer Scannell Properties. At the time, commercial real estate firm JLL marketed the asset as a long-term investment in a growing industrial market. Luis Castillo, a managing director at JLL, said investor interest in long-duration industrial assets in Florida infill markets was unprecedented.

Market conditions have shifted since 2021. Higher borrowing costs and rising vacancies have pressured the Tampa Bay industrial sector. The South Korean group financed the original purchase with a $56.7 million mortgage from Standard Chartered Bank. That loan carried an interest rate of approximately 2.85%. Refinancing was expected to raise the rate to about 7.68%, according to South Korean financial publication ChosunBiz.

The investment group chose to sell rather than commit more capital. Currency-hedging obligations and higher borrowing costs drove the decision. About $56.7 million of the sale proceeds will repay outstanding debt. Mirae Asset Global REIT originally invested $37.8 million in equity. The company expects to recover the equivalent of about $2.3 million from the investment after the sale.

Including distributions received during ownership, the firm projects recovering about 44.4% of its original investment in Korean won. The sale occurs as the local market cools. Cushman & Wakefield reported the regional industrial vacancy rate reached 8.2% in the third quarter, up from 7.6% a year earlier. Leasing activity dropped 38.1% compared to the same period in 2025.

The market recorded nearly 197,000 square feet of negative net absorption last quarter. This means more space was vacated than occupied. Average asking rents climbed 11.1% over the previous year to $11.30 per square foot. Pinellas County’s industrial vacancy rate stood at 6.5%, which is below the regional average.

WSRE CP Last Mile Investors LLC is a Delaware company that registered to do business in Florida in September. The recorded deed does not list changes to FedEx’s lease or operations. The buyer has not publicly detailed its plans for the facility. Representatives for the buyer, Mirae Asset Global Investments, and JLL did not return calls seeking comment before publication.