View of the multi-tenant warehouse building at 4542 LB McLeod Road in Orlando's 33rd Street Industrial Park, one of 11 buildings there recently acquired by KKR.
View of the multi-tenant warehouse building at 4542 LB McLeod Road in Orlando's 33rd Street Industrial Park, one of 11 buildings there recently acquired by KKR. (Cite Partners)

Global investment firm KKR paid $37.1 million on Tuesday to enter the Greater Orlando market, buying a portfolio of 11 Class B warehouse properties with value-add potential through lease-up.

Located in the 4000 block of LB McLeod Road and west of the intersection with Vineland Road, the buildings, which date to the mid-1980s, cover six taxable parcels in the 33rd Street Industrial Park and total more than 533,700 square feet of conditioned area.

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KKR's real estate division claims more than $5 billion invested in assets under management, with eight other commercial properties in the United States, per the company's portfolio webpage.

Duke Realty brings site under contract near downtown Orlando for potential warehouse

Insight on the property's ownership history, past plans for a corporate headquarters that fell by the wayside, and last-mile delivery benefits of the site.

Tuesday's acquisitions are its first commercial real estate assets in Orlando. Officials with the company did not respond to requests for comment on Wednesday.

The buyer sourced a $28.5 million mortgage from CitiBank to help close the deal, which will mature in June 2022.

The seller was an affiliate of Dallas-based Crow Holdings, which paid a combined $32.2 million for the properties back in 2007.

Cite Partners, which previously leased the buildings for Crow, was retained this week by KKR. The portfolio currently has 138,871 square feet vacant, according to Wilson McDowell, principal and managing director at Cite Partners.

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Insight on the New York-based investment trust that has had a busy week, and the single-tenant asset it lined up locally.

Industrial real estate sale reached $16 billion nationwide in the first quarter of this year, up 20 percent from the same period in 2017 and the second highest quarterly figure in the sector's history, according to a national market report by JLL.

Overall vacancy rate for the Orlando industrial market was 5.6 percent at the end of Q1, down 70 basis points from Q1 2017, and the quarter closed with net absorption of more than 1.25 million square feet, according to the latest local market report from CBRE.

Have a tip about Central Florida development? Contact me at bmoser@growthspotter.com, (407) 420-5685 or @bobmoser333. Follow GrowthSpotter on Facebook, Twitter and LinkedIn.

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