Avison Young closes $15.2M disposition of 10-building, 139,795 SF industrial and retail net-leased portfolio in Florida and Georgia
Buyer obtains $10.64M BankUnited loan secured by Avison Young
Fort Lauderdale, Fla. — Avison Young’s Florida Capital Markets Group completed the $15.2 million sale of a single tenant, net-leased portfolio consisting of ten industrial distribution and retail properties totaling 139,795 square feet within highly desirable metropolitan regions of Florida and Georgia.
On behalf of the seller, Hydraulics Supply Company, Avison Young Principals David Duckworth, Michael T. Fay, and John K. Crotty facilitated the collective disposition of the assets to SunCap Opportunity Fund, a private real estate investment company focusing on industrial and retail assets.
Motion Industries, a subsidiary of publicly-traded Genuine Parts Company, commenced a long-term lease of the ten properties in October 2018. The assets were owner-occupied by privately-held Hydraulics Supply Company, which Motion Industries recently purchased as part of its strategic expansion plan. Hydraulics Supply Company retained ownership of the real estate prior to trading it to SunCap.
“The buyer acquired a net-leased portfolio featuring stable cash flow and long lease terms with built-in increases,” said Duckworth. “The lease terms span the next economic cycle making the property recession-proof for the foreseeable future.”
For the purchase, SunCap engaged the Florida Capital Markets Group to source a $10.64 million loan. At 70 percent loan-to-value, the loan was negotiated by Avison Young Principal George Vail and financed through BankUnited for a 5-year term with a 30-year amortization schedule. The interest rate was 5.05 percent. The terms allow for the release of the individual properties.
“Net leased by a high-credit, investment grade tenant, we were able to secure the interest of several lenders offering our client favorable terms,” said Vail. “Ultimately, we successfully completed the loan transaction with BankUnited.”
The portfolio consists of the following assets:
- The 58,961-square-foot industrial facility at 300 International Parkway in Sunrise, Florida.
- The 15,386-square-foot retail location and repair facility at 326 SE 1st Street in Belle Glade, Florida.
- The 12,500-square-foot retail and repair facility at 7200 Dr. Martin Luther King Jr. Boulevard in Tampa, Florida.
- The 11,400-square-foot retail location and repair facility at 680 Montgomery Street in Orlando, Florida.
- The 10,330-square-foot light industrial/retail building at 7680 Central Industrial Drive in Riviera Beach, Florida.
- The 7,200-square-foot light industrial/retail building at 2601 SW 2nd Avenue in Fort Lauderdale, Florida.
- The 6,612-square-foot retail location at 2600 W. Sample Road in Pompano Beach, Florida.
- The 6,438-square-foot industrial/retail location at 51 SE 3rd Terrace in Florida City, Florida.
- The 6,000-square-foot light industrial/retail building at 12,900 Metro Parkway in Fort Myers, Florida.
- The 4,968-square-foot retail location at 937 Forest Parkway in Forest Park, Georgia.
The largest asset, the industrial situated within Sawgrass Corporate Park in Sunrise, Florida, serves as Motion Industries’ corporate headquarters and primary distribution hub. The additional eight distribution and retail/service branches cater to the company’s industrial clientele. Excess land at several of the locations underscores the portfolio’s value-add opportunities.
SunCap’s current portfolio is valued at over $100 million and incudes assets throughout the southeast U.S. and Colorado. The managers, Scott Auker and Brian Mark, have acquired over $2 billion of commercial property in their history.