An affiliate of New Jersey-based real estate investor Denholtz Associates paid $18.5 million on Wednesday to enter Orlando's small-bay industrial market, buying five buildings west of the airport with an eye for more like it in 2017, a lead executive with the company told GrowthSpotter.
Located southeast of the intersection of Taft Vineland Road and S. Orange Blossom Trail as part of Cypress Park, Denholtz acquired 9500, 9777, 9901, 9535 and 9603 Satellite Blvd., warehouses that total more than 253,200 square feet of conditioned area.
"Cypress Park is extremely well located. We feel there is a lot going for Orlando and we're going to be a player in Orlando for a long time to come," said J.P. Josephson, head of Florida acquisitions for Denholtz. "We're a big believer in the industrial market in general, and the macro story behind why industrial is a hot product type now is something we're fully behind."
This is Denholtz's third current real estate asset in Greater Orlando, following a 12.2-acre office park in Winter Park, and a six-story office/retail building in Downtown Orlando at 100 E. Pine St.
The Cypress Park buildings were 98 percent occupied at time of sale, with an average age of 20 years on each. Denholtz was drawn to the property last year via a marketing package by listing agent Cite Partners, and will retain Cite as leasing agent.
"The property was in great shape, as if it was institutionally owned and managed for years, with zero deferred maintenance," Josephson said.
The sellers were affiliates of BJP Real Estate Partnership Ltd, a family-owned business based in Charlottesville, Virginia, and Westcliffe, Colorado, with ties to the Ronald and Lois Harbert family of Orlando, and at one time managed by the late Suzanne Boice Jack.
Looking forward, Cypress Park is indicative of what Denholtz Associates is looking to acquire next: well-occupied and well-positioned small bay industrial properties, Josephson said.
"We definitely want to increase our footprint in Orlando, and would love to acquire another million to 2 million square feet of this product type there," he said. "We feel we're the right buyers for this product type, and are looking to expand in Orlando, Tampa and South Florida."
Denholtz sourced a $12.9 million mortgage from Union Fidelity Life Insurance to finance the acquisition.