Case Study
Overview
Foundry Commercial represented a private capital owner of a fully occupied 204,472 SF flex industrial park outside of Orlando, FL.
Location
Groveland, FL
Foundry IAG represented a private capital owner of a fully occupied 204,472 SF flex industrial park outside of Orlando, The property spanned more than 24 acres and offers space for retail, office, and industrial uses across 17 buildings. The long-time owner of the property had a deep history with the tenants, and provided rents that were significantly below market (+25%). All tenants were on year-to-year modified gross leases with no renewal options, so there was an opportunity for an investor to roll rents up to market over the first 1-2 years after
CHALLENGES:
- The owner did not want the property broadly marketed and given that it was a unique offering with 98 tenants it required a significant amount of underwriting from a limited pool of investors.
- Also, the high interest rate environment made it difficult to source debt.
STRATEGY:
- Foundry’s IAG team used the ‘off-market’ nature of the opportunity to drive interest from investors.
- Foundry also worked with the owner to offer seller financing with more favorable debt terms and push the value of the property.
RESULTS:
- Foundry’s IAG team created a competitive bid process resulting in five offers from investors.
- The property successfully closed for $28,000,000, which was a 4.9% cap rate which exceeded the seller’s original pricing expectations.