A South Florida investor paid $5.8 million last week for a vintage industrial warehouse complex bordering of The Packing District.
Located on Diversified Way and southwest of the N. Orange Blossom Trail-Princeton Avenue intersection, the three-building complex is one of the few properties in the district that wasn't owned by Dr. Phillips Charities, the master developer of the 202-acre mixed-use district.
The Lee & Associates Central Florida Industrial Team of Tom McFadden, Bo Bradford and Derek Riggleman represented the seller, Lake Jessup Consulting LLC.
"I think, personally, The Packing District is going to turn into College Park West," Riggleman told GrowthSpotter. "The industrial users down there will continue to be an important part of the district, but the quality of the user will change a bit."
The 5.9-acre site is rail-served and includes a 32,850-square-foot warehouse fully leased to a long-term tenant. The larger building was constructed in 1971 and has 85,700 square feet. It was previously used for record storage and was vacant at the time of the sale, as was a smaller office building.
The buyer, Equity Crown LLC, was represented by SC Advisors Andy Swadel, Jay Berlinksy, and Patrick Hughes. The team also will head up the leasing and management of the property.
"This is an industrial investment in a unique building in a submarket that has almost zero vacancy," Swadel said. He told GrowthSpotter the new owner would likely demolish the 8,317-square-foot office building to expand the parking and truck court space.
The location and investments by Dr. Phillips in the district provide flexibility for the new owner to lease the warehouse as is or embark on a major renovation of the property to compete with new Class A product.
"It sits in a pretty interesting area that will evolve over time," Swadel said.
Dr. Phillips is striving to develop a unique, eclectic, and vibrant mixed-use environment that pays homage to the industrial heritage of the district and the community legacy of Dr. Phillips.
The master plan that was approved last October would allow residential uses in what is now an industrial area - a critical factor for encouraging the adaptive reuse of Dr. Phillips' historic buildings. The plan identified more than a dozen industrial buildings, several along Diversified Way, as having potential for adaptive reuse as a food hall, commercial buildings, and even loft-style housing.