Pendleton White, Jr., and Jeff Witherell

JACKSONVILLE, FL–Plymouth Industrial REIT has signed a definitive agreement to acquire a 20-building, 1.1 million-square-foot light industrial and flex portfolio here for $97.1 million in cash. The acquisition, which is expected to close in mid-December 2018 subject to customary closing conditions, is projected to provide an initial yield of 8.4%.

“We have targeted Jacksonville for some time and coveted a meaningful presence that gives us immediate scale, infill locations and a mix of light industrial and flex buildings to accommodate a wealth of tenants,” said Pendleton White, Jr., President and Chief Investment Officer. “Jacksonville is the third fastest growing market in the country with the one of the tightest industrial vacancies and lowest amount of inventory under construction of any market we have analyzed in the Southeast.”

According to Jeff Witherell, Chairman and CEO of Plymouth Industrial REIT, the acquisition will represent an increase of more than 25% over and above its projected full year 2018 NOI.

The portfolio consists of three business parks totaling 20 buildings and 1,133,516 square feet of light industrial and flex assets. The buildings are in close proximity to one another in the Southside submarket of Jacksonville, centered by the intersection of Interstate 95 and J.Turner Butler Boulevard.

The properties are currently 96% leased to 40 tenants and the portfolio has a weighted average lease term of over three years remaining. Tenants include Comcast, Veritiv, Cintas, Alstom, Staples, Cardinal Health, The Home Depot, Johnson Controls, Safelite AutoGlass and Shaw.

Plymouth expects to fund the acquisition with $34 million in proceeds from a recently announced strategic investment from an affiliate of Madison International Realty Holdings, LLC and approximately $63 million in short-term borrowings from KeyBank.

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Erika Morphy

Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.

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