ORLANDO—An eight building industrial portfolio in Orlando just traded hands. Brennan Investment Group, a private real estate investment firm that acquires, develops and operates industrial properties, snapped up the 254,915-square-foot portfolio.
This portfolio consists of light-industrial buildings located in Orlando's Northwest Orange County submarket. Northwest Orlando is one of the largest industrial submarkets in the city with over 21 million square feet
"The Orlando market has demonstrated strong fundamentals, evidenced by 2.5 million square feet of positive net absorption year-to-date, and a vacancy rate of 9.2%, down 60 basis points from this time last year," says Scott McKibben, Chief Investment Officer at Brennan. The buy increases Brennan's Florida and Southeast portfolio to 35 buildings.
"This acquisition is illustrative of our strategy to acquire functional, well-located assets, in a rebounding market with the ability to add value through repositioning and hands-on leasing," says Bob Krueger, southeast managing principal for Brennan. Financial terms of the deal were not disclosed.
Central Florida's industrial market is seeing strong activity. Liberty recently sold one of the region's largest industrial buildings, a 713,585-square-foot industrial property at 8201 Chancellor Drive for $35.5 million.
In the second-largest industrial sale in Central Florida this year, Legacy Capital Partners, a private equity investor out of Boulder, CO, grabbed Central Florida Business Park for $9.7 million. And McCraney is massively active across Central Florida's industrial market.
"Amazon put the Central Florida region back on the map for large distribution centers. Between Orlando and Tampa, there is now a huge demand for warehouse space," Rian Smith, first vice president of CBRE Tampa, Industrial, tells GlobeSt.com. "We're seeing those large e-commerce distribution users focusing on the I-4 corridor for a number of reasons, including population growth, improving economic conditions, and increased consumer spending."
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