Leisure Bay, a 30-year-old manufacturer of patio furniture, billiard tables and portable spas, has signed a five-year, $8-million lease that includes an option to buy the strategically located 34-acre campus after one year. The site is 20 miles north of Downtown Orlando.
The property was on the market for 60 days; the deal was done in 45 days, from contract signing to closing. Six other buyers were bidding for the property. Area brokers who monitor industrial real estate transactions tell GlobeSt.com the deal is the largest locally in the last five years.
Realvest Partners' vice president Michael Heidrich, a commercial real estate professional for 20 years, says the transaction is "the largest commercial lease transaction I have ever been involved in." He obtained the listing from property owner Ashley Capital Corp. of New York. CBRE's David Murphy found the tenant. "Sometimes you get lucky in this business," he tells GlobeSt.com.
Under the deal, Leisure Bay will initially lease 400,000 sf to house its 300 employees at the plant at 1090 Emma Oaks Trail. Leisure Bay is subleasing the remaining 170,000 sf. "The deal is structured initially as a lease for tax reasons," Heidrich tells GlobeSt.com. He and Murphy already have subleased 45,000 sf for five years to Soule Inc., a box container manufacturer, the broker says.
The average asking base rent at the property is $3.25 per sf triple net with expenses at $1 per sf. The $8-million aggregate value of the Leisure Bay transaction equates to about a rent of $2.75 per sf. The plant and offices themselves sit on a 13-acre pad within the 34-acre property. "Plenty of room for additional new development," Murphy says. "With this transaction, Leisure Bay has the opportunity to run its entire operation under one roof, and also positions the company for future expansion." The company has been leasing a total 265,000 sf in three buildings in west Orlando.
Heidrich tells GlobeSt.com he and Murphy ran into no special environmental challenges or bureaucratic hurdles in closing the deal.
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