Central Florida Industrial Asset Fetches $125 Million

In one of the Orlando market’s largest industrial transactions, a Seminole County business park has changed hands in a $125 million deal.

New York-based Investcorp acquired the American Industrial Center from Connecticut-based Starwood Property Trust.

The 820,000-square-foot, 57-acre property is located at 801 S. Ronald Reagan Blvd. in Longwood. It comprises 25 small-bay/light industrial, Class B buildings constructed between 1967 and 2002, with several featuring outdoor storage.

Bank of America provided Investcorp with $83.7 million in acquisition financing for the deal, which was finalized on February 6.

Cushman & Wakefield’s Rick Colon and Mike Davis brokered the sale, while Lee & Associates’ Derek Riggleman and Ryan Griffith, who currently oversee leasing for the center, will continue in their roles under the new ownership.

Starwood Property Trust had purchased the property in 2022 for $139.5 million, according to public records.

Marketing materials from Cushman & Wakefield indicate that the business park is 93.5% leased, with 61 tenants occupying an average of 12,519 square feet. Nearly 42% of the tenants have remained at the property for over a decade. Additionally, rental rates within the park are 21% below the market average, making it an attractive option for businesses.

Over the past five years, the previous ownership invested $1.4 million in capital improvements, which included roof repairs, HVAC replacements, concrete repairs, and the demolition of an existing structure to create a fenced storage yard.

According to Cushman & Wakefield’s Q4 industrial market report, the Altamonte Springs/Longwood submarket had a 4.2% vacancy rate—significantly lower than the overall Orlando market’s 8.3% vacancy rate.

Source:  GrowthSpotter