Land-trade hold
18-30 months
Shorter for Airport West IU-1 parcels; longer when zoning, environmental or utility work must create the spread.
Underwriting Framework
Shared assumptions behind the corridor return math
This page makes the model explicit. Where the market gives us a verified number, the room cites it. Where Miami-specific data is thin, the room says so and labels the assumption rather than pretending a broker whisper is a fact.
Construction cost
$10.7M / MW
JLL 2026 Global Data Center Outlook base cost for 2025. Corridor utility and land are layered on top.
JLL • 2026-01-06
Wholesale rate base case
$195.94 / kW / month
CBRE H2 2025 U.S. primary-market benchmark. Miami-specific adjustments are disclosed as assumptions corridor by corridor.
CBRE Research • 2026-02-26
Stabilized exit cap
6.0%-6.75%
Anchored to JLL's ~6% average asset-level cap rate and widened for secondary-market / execution risk corridors.
JLL • 2025-08-22
Illustrative Waterfall
GP / LP economics summary
1. Return of capital
100% to LP until contributed capital is returned
Standard first-loss protection for capital recycling.
2. Preferred return
8.0% simple pref to LP
Illustrative only; sized to look like a credible private-opportunity vehicle, not a retail syndication.
3. GP catch-up
80 / 20 split until GP reaches 20% of distributed profits
Creates a clean bridge from capital recovery into carry economics.
4. Residual promote
70 / 30 LP / GP
Aggressive enough to matter, still inside a range an institutional co-investor can actually debate.
Model Notes
What the room is and is not claiming
Land-trade IRRs are calculated from midpoint basis plus corridor-specific soft costs into a comp-supported land exit, with no leverage and no tax structuring.
Development IRRs use a four-year hold, the JLL 2025 construction-cost benchmark, a disclosed corridor rack-rate assumption, a stated stabilized occupancy and a stated exit cap.
Medley and Opa-Locka power-capacity numbers are screening assumptions only. They are included because IC committees need to see the provisional underwriting, but they are visibly tagged as assumptions until utility letters exist.
2026 Global Data Center Outlook
JLL • 2026-01-06
Global average data-center construction cost rose from $7.7 million/MW in 2020 to $10.7 million/MW in 2025; JLL forecasts $11.3 million/MW for 2026.
Open sourceNorth America Data Center Trends H2 2025
CBRE Research • 2026-02-26
Primary-market average asking rate increased to $195.94/kW/month. Sites with power access inside 18-36 months are highly sought after. Powered sites in Northern Virginia and the Northeast exceeded $8 million per acre.
Open sourceMiami Wholesale Colocation Rate Underwriting Convention
Key Bay Capital • 2026-03-31
Because Miami-specific public rack-rate benchmarks remain sparse, underwriting uses the CBRE H2 2025 U.S. primary-market average as base case, then applies corridor premiums or discounts explicitly.
Open source