Plymouth Industrial REIT acquired Salisbury Business Park in Jacksonville, FL as part of a 20-building, three business park portfolio totaling 1.1 million square feet for $97.1 million. The portfolio is located at the intersection of I-95 and J. Turner Butler Boulevard.
BOSTON—Locally-based Plymouth Industrial REIT, Inc. has completed the previously announced acquisition of a 20-building, 1.1 million-square-foot light industrial and flex portfolio in Jacksonville, FL for $97.1 million.
The company also reports that the $75-million investment by an affiliate of New York City-based Madison International Realty Holdings, LLC in Plymouth Industrial closed on Dec. 14 in conjunction with the Jacksonville portfolio deal.
Proceeds from the Madison International investment were used to fund the repayment of a $31.2-million term loan with KeyBank that was to mature in August 2021 as well as deploy $34 million to partially fund the Jacksonville acquisition, fund a $5-million stock repurchase program authorized by the company's Board of Directors and for working capital and other corporate expenses, including closing costs.
Jeff Witherell, chairman and CEO of Plymouth Industrial REIT, says, “We have demonstrated throughout our early life as a public company that we can source accretive acquisitions that fuel our near and long-term growth plans while providing significant scale in some of the more attractive industrial markets in the country. With these announcements, we have taken a dramatic step forward in Jacksonville and with a proven partner that opens us up for future growth.
The Jacksonville portfolio acquisition was also funded with a $63-million short-term loan from KeyBank that bears interest at a rate of 100 basis points over LIBOR. Plymouth intends to refinance the loan in 2019 with secured financing.
The portfolio consists of three business parks totaling 20 buildings and 1,133,516 square feet of institutional quality 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. The portfolio has a weighted average lease term of more than three years remaining and contains national and regional tenants such as: Comcast, Veritiv, Cintas, Staples, Cardinal Health, The Home Depot and Johnson Controls.
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John Jordan
John Jordan is a veteran journalist with 36 years of print and digital media experience.
