UPDATED: JUNE 28, 2018 3:39 PM — Boca Raton-based IP Capital Partners recently paid more than $14.8 for a Class-A warehouse property in Lake Mary that's the largest industrial building in Seminole County, with significant lease-up potential and a keen eye for more value-add assets in Greater Orlando.
Located on 32.6 acres at 2452 Lake Emma Road, the Innovation Center at Lake Mary has over 560,000 square feet of leasable area, including 62,500 square feet for offices and flex design with cross-dock capability.
The sale closed on June 14 and was recorded Tuesday in Seminole County.
It is just the second Orlando-area acquisition for the South Florida private real estate investment and asset management company. In December 2015, IP Capital paid $28.2 million for the Millenia Park One office building on Vineland Road in Orlando.
"We would love to buy more … if only our competitors would stop bidding up all the properties," Chief Investment Officer Josh Procacci told GrowthSpotter. "But it hasn't stopped us from looking. We love the dynamics of Orlando."
The seller was American Real Estate Partners through its AREP Lake Mary LLC affiliate, which previously paid $9 million in July 2011.
The center consists of three buildings with 50 foot dock-high doors, three grade-level doors, and storage area for 40 to 50 trailers.
Though the structures were built in 1995 and 1998, Procacci said they are in good shape with no renovations needed.
"There's good parking, good (structural) bones; the buildings are in great shape and ready to go," he said.
The center was 55 percent leased at time of sale, a situation Procacci attributed to the former owners/managers being based in Virginia.
"Real estate is very local," he said. "You have to be proactive and on the ground. Our team is that group."
It took two and a half years between IP Capital's first and second Orlando-area acquisitions, but Procacci said the company is not deterred from looking further here.
"We probably looked at 20 to 30 deals and this is the one we were successful with," he said. "We're looking at more and we want to be able to expand our footprint up there."
CBRE's David Murphy will serve as IP Capital's leasing agent for the building.
"IP Capital has the opportunity to take advantage of a vibrant industrial market in Central Florida by leasing out the remaining space in the building," he said. "We are seeing increasing demand for industrial space north of Orlando, and there are few options for larger industrial tenants in this market."