UPDATED: NOVEMBER 8, 2017 3:15 PM — New Jersey-based real estate company Denholtz Associates paid $12.05 million earlier this month for its third flex-industrial asset buy in Orlando this year, and is pursuing more in the market, a lead executive with the company told GrowthSpotter.
Located at 3600 Silver Star Road and 3701-3735 Mercy Star Court in northwest Orlando, Denholtz bought 19.49 acres with a private access road, which house eight flex-industrial buildings known as the Silver Star portfolio totaling 254,915 square feet of conditioned area, dating from 1971 to 1985.
This acquisition gives Denholtz five office and industrial properties in Greater Orlando totaling more than 814,000 square feet of conditioned area. The company has purchased roughly 599,615 square feet of that since January of this year.
"We love Orlando as a macroeconomic story, and we're a family-run private real estate company so there is no three- to five-year horizon on these, they can be 20-year legacy assets," said J.P. Josephson, head of Florida acquisitions for Denholtz. "We have a pipeline still looking in Orlando, Tampa and (South Florida) for similar type assets."
This was the second of two planned closings by Denholtz on Brennan's industrial assets in Orlando, following a $5.05 million purchase in early October of the Parkway Commerce Center (92,575 SF). The two sales completed Brennan's divestiture from the Orlando market.
"Parkway was about 70 percent occupied at time of sale and Silver Star is 96. We felt it was a good opportunity to acquire these assets with a bit of value-add left in them," Josephson said. "Some leases are still on gross leases and below market rate, so we think we can bring some of the square footage up to market rents. We feel there are property management efficiencies we can bring to the table due to the rest we own in Orlando."
Joe Rossi of Colliers International helped coordinate Denholtz's purchase of Parkway Commerce Center in October, while Tom McFadden and Derek Riggleman of Lee & Associates aided in the Silver Star Road acquisition. Cite Partners will be hired to lease the properties, as it has for Denholtz's other Orlando assets.