News
Tampa, Fla. (November 25, 2024) – Foundry Commercial, a full-service real estate firm with offices across the Southeast and Texas, today announced the acquisition of just under 20 acres of prime land adjacent to Citigroup’s East Tampa campus. The newly acquired site, now branded as Two Palms, will soon be transformed into 262,000 square feet of shallow-bay industrial space, solidifying Foundry’s commitment to meeting the growing demand for warehouse facilities in high-traffic urban locations.
The site’s proximity to major transportation arteries – Interstate 4 and Interstate 75 – makes it one of the most desirable infill locations in the Tampa Bay area, which boasts one of the strongest industrial submarkets in the region.
“This purchase represents a significant opportunity to deliver much-needed industrial space in one of the tightest and most attractive submarkets in Tampa Bay,” said David Kern, Deal Principal at Foundry Commercial in Tampa. “Two Palms offers the best of both worlds: a corporate campus environment with infrastructure, lighting, and signage already in place, alongside easy access to major highways that serve local, national, and international businesses. It’s an ideal location for this shallow-bay project.”
“Principal Asset ManagementSM is thrilled to be continuing our collaboration with Foundry Commercial on this redevelopment project,” added Rob Klinkner, managing director, real estate, Principal Asset Management. “The repositioning of the Two Palms site into extremely well-located Class-A shallow-bay product will help meet the demands of this underserved segment of the Tampa market.”
The Two Palms project is the latest example of Foundry’s ongoing strategy of converting underutilized or obsolete office properties into industrial developments in areas of high demand. Foundry currently has three additional office-to-industrial conversion projects underway – one in South Florida and two in the Dallas area – and is leading a broader initiative to replace over 1 million square feet of outdated office space with 2 million square feet of industrial product over the next 18 months. With six more projects in development or predevelopment, Foundry is actively reshaping urban landscapes to accommodate shifting market demands.
Construction at Two Palms is expected to begin in the first quarter of 2025, with completion anticipated by the first quarter of 2026. The development will feature five buildings – three on the southern site and two on the northern site – designed specifically for smaller, local businesses and mid-sized tenants. Target tenant sizes will range between 15,000 and 35,000 square feet. Shallow-bay industrial properties like these are essential to urban markets, providing space for commercial and residential service businesses, inventory storage, light manufacturing, and local offices, while also offering real estate solutions to national and international businesses.
“This is a key step in Foundry’s broader strategy to deliver urban industrial solutions that cater to evolving tenant needs,” Kern added. “Two Palms aligns perfectly with our approach, and we are excited to begin construction and bring this project to life.”
The acquisition was supported by Foundry Senior Associate Caitlin Quinlan and Associate Jesse Drake, alongside Justin Ruby, SIOR, CCIM. Foundry Commercial will also be handling leasing at the property. For leasing inquiries, contact Caitlin Quinlan at caitlin.quinlan@foundrycommercial.com and Jesse Drake at jesse.drake@foundrycommercial.com.