Diversify Your Portfolio with this Industrial Offering from a 4-Time Repeat Sponsor
High current cash yield and potential upside at exit, with sponsor acquiring 3 fully occupied multi-bay industrial buildings with limited competitors nearby.
Invest in Boynton BeachOffering Overview
Greater Orlando Small Bay Industrial
Minimum Investment
$15,000
Offering Type
Equity
Target Hold
36 Months
Net Target Investor Equity Multiple
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Target Average Cash Yield*
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$15K
Minimum Investment
Industrial Offering from a 4-Time Repeat Sponsor
What to Know
This 43.9k SF multi-bay industrial property is located in Orlando, FL and consists of three fully occupied buildings in Kissimmee, part of the Orlando, FL market. The portfolio is fully occupied by 17 tenants who are sole proprietorships and small businesses. These tenants require a hybrid office and industrial configuration like this property provides. The weighted average leasing term is approximately twelve months.
Upon Lease expirations, the Sponsor will seek to either extend in place leases at current market rates or pursue new tenants at market. There are several potential tenants on the waitlist for a multi-bay/small industrial type space. The Sponsor believes renewals at market should be prevalent given the limited availability of alternative options in the market, paired with the Tenant Improvement investments made by the tenants to adapt the leased space to their specifications.
Experienced Sponsor with Well Situated Property
Experienced Sponsor with Well Situated Property
Ultimate Realty
- Ultimate Realty is a four time repeat sponsor of EM, with their most recent deals being PODS Industrial Portfolio in Tampa, FL, and Orlando Last Mile Industrial, an industrial, sale leaseback. EM’s earlier opportunity with the Sponsor was a prior investment in a 256K SF distribution center in Hartford, CT, which exited 1 year earlier than the anticipated hold at a 2.0x multiple and 55.8% IRR.
- To date, the Sponsor has acquired or developed nearly $1M SF of industrial assets, 6 of them located in Florida. Although the Sponsor’s strategy is to hold their investments on a long term basis, in the last 10 years, Ultimate Realty has exited 6 projects with a total sales price of $110 M1.
Functional, Well Situated Property
- The Property was recently developed in 2008 and was purposely built to accommodate multi bay/tenant usage and features separate entry/loading doors, supporting office space, and ample parking/loading areas.
- Access to major thoroughfares and destinations include state highway FL-429 and interstate I-4 with good connectivity to downtown Orlando and nearby Tampa.
Compelling Mark to Market Opportunity in a Low Vacancy Subsector and Strong Rent Growth Market
Compelling Mark to Market Opportunity in a Low Vacancy Subsector and Strong Rent Growth Market
- In place rent is a ~38% discount to the average market rent, with several comparable properties realizing in excess of the market wide average for the subsector.
- Small bay supply is limited as there are few competitors nearby, and all are fully leased and have tenants on a waitlist. The submarket vacancy is expected to remain tight and continue to drive strong rent growth.
Appealing Acquisition Basis
Appealing Acquisition Basis
- The Property is being acquired by the Sponsor at an approximate 17% discount to replacement cost.
- Independent valuation by Green Street Advisors indicates a value for the Property at a 12% premium relative to the Sponsor’s basis.
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