UPDATED: July 26, 2018 10:35PM — A Miami-based real estate investor paid $5.7 million this week for nearly 110,000 square feet of warehouse space in northwest Orlando's "construction corridor."
Brian Holland acquired a pair of adjacent warehouse buildings, each 50,000-plus square feet, at 4424 Seaboard Road and 4455 Dardanelle Drive from an Atlanta-based family investment firm. The warehouse district just off Silver Star Road is a hub for construction suppliers and related companies.
The buildings included finished office suites and featured 12-foot by 14-foot dock-high doors, 21-foot clear height and three-phase power.
Holland, owner of The Lucky Companies, bought the 30-year-old industrial assets through an affliate named Lucky Orlando 2. He currently owns and manages approximately 3 million square feet of commercial real estate.
Holland sourced a $4.56 million from Marquis Bank. The buildings were well maintained and fully leased at the time of the sale.
Carlos Velasquez with Miami-based Vivo Real Estate Group manages Holland's portfolio. He said the company entered the Orlando market in 2017 and is actively looking for more properties.
"We specialize in the industrial market, and we do not discriminate on location or opportunity," Velasquez told GrowthSpotter. "If it's within the industrial field, we'll consider it."
Seller Les Rubin said he had previously sold another industrial property in Tampa to Holland.
The Orlando properties, which once housed the Rubin family's flooring supply business, were not on the market. He was approached by HFF Senior Director Robbie McEwan and Nick Hanson of Marcus and Millichap, who had brokered the Tampa sale.
"We had a relationship with the owner going back many years, and this is a legacy asset for him," McEwan said. "We had worked with Lucky on a previous sale of an Orlando small bay portfolio last year for $17.5 million, and we just sold another one to them."
McEwan said he approached Rubin because he knew the family was looking to divest of their industrial assets and exit the business.
"It was a natural fit, so we decided to bring the two together again," he said.
McEwan said small bay industrial spaces provide a strong value-add opportunity in today's market.
"Industrial is very attractive right now," he said. "The market is really strong, but a lot of buyers aren't willing to take on properties that need capital investment or have smaller tenants. It's not big box, sexy industrial, but there's more of an opportunity to raise rents with small bays. It's just more management-intensive."