An affiliate of Boston-based Cabot Properties paid $11 million on Tuesday for another value-add warehouse property in Greater Orlando, and is listing the market among its Top 20 for industrial investment.
Located at 1264 La Quinta Dr., directly south of the Florida Mall, the 9.3-acre property is served by rail and features a distribution warehouse with 184,732 square feet of conditioned area, dating to 1973.
Cabot executives said Thursday the property was a one-off purchase and not part of a portfolio deal, but declined further comment due to being in activefundraising mode.
The private equity real estate investment firm is actively seeking opportunities to acquire and develop industrial property in major metropolitan markets, and is traditionally an all-cash buyer, according to its website.
Cabot lists Orlando and Tampa among 20 current target markets, and will manage the new Orlando asset through its Cabot Investments Value Fund V.
Cabot also claims online to own more than 3.47 million square feet of industrial property in Orlando, with more than $153.54 million invested.
The seller was Colfin Cobalt Owner III LLC, an affiliate of Los Angeles-based Colony NorthStar, which previously paid more than $7.3 million for the property through a separate REIT in October 2013.
A Cabot Properties fund previously spent $10.4 million in March 2017 for two buildings that comprise Sanford's North Park Commerce Center, totaling 117,00 square feet.
Greater Orlando's industrial market continued its strong absorption and disciplined new construction trends in the fourth quarter of 2017, closing the period with a 4.2 percent vacancy average and $6.29 average asking base rent per square foot, according to Cite Partners' quarterly market report.
That vacancy rate is the market's lowest since Q2 2007. While seven new buildings totaling nearly 473,000 square feet were delivered in Q4 they didn't alleviate tight inventory, prompting rental rates to rise 17 cents year-on-year.