The Trammell Crow Co. investment sales team of John McRae, Dale Peterson and Hal Breedlove, negotiating for Invesco, had the property on the market for only 45 days. They received 15 offers.
"Distribution centers and warehouse portfolios continue to be a targeted investment by investors in the Central Florida area," McRae tells GlobeSt.com. "Stable demand fundamentals and limited speculative construction over the past 24 months have led to aggressive pricing for warehouse buildings by pension fund advisors, real estate investment trusts and private equity buyers."
While the volume of transactions in 2003 did not reach the volume experienced in 1998, over $100 million, "well-leased properties of institutional quality attracted national buyers at lower cap rates than was achieved five years ago," McRae says.
He adds, "Given the recovery outlook of the national economy and continued low-interest rate environment, we expect demand for industrial investments to remain extremely competitive." The broker says he is also "starting to see momentum in the office investment sector on the buy and the sale side."
Crossroads Distribution Center was built in phases from 1984 through 1991. Average asking base rents are $3.75 per sf to $4.25 per sf.
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