Denholtz Associates and Militello Capital Acquire Two Industrial Portfolios in Orlando, Florida for $17.1 Million

11.28.2017

Deals highlight continued strong growth fundamentals in the Orlando commercial real estate market

Orlando, Fla. – (November 28, 2017) —Denholtz Associates and Militello Capital, a greater Washington, DC private equity investment firm, announced the acquisition of two industrial/flex portfolios in Orlando, Fla. The Silver Star Portfolio, an eight-building, 254,915-square-foot industrial flex portfolio in Orlando, Fla was acquired for $12,050,000 and the Parkway Commerce Center, a two-building, 91,500-square-foot industrial flex property was acquired for $5,050,000 in the sale from Brennan Investment Group.

Located on 3600-3802 Silver Star Road, the buildings making up the Silver Star Portfolio range in size from 26,400 to 39,600 square feet and the entirety of the portfolio is currently 95 percent leased by 30 different tenants. The nearby Parkway Commerce Center located at 3501 Parkbreeze Court is currently 68% leased by 23 tenants. Each of the properties, boasts unparalleled access with a strategic location directly west of North John Young Parkway and benefit from nearby access to State Route 434 and US Highway 441 as well as Interstate 4. Additionally, Orlando International Airport, which serviced 41.9 million passengers in 2016 is less than 12 miles from the properties.

The two portfolios join Denholtz Associates’ other holdings in Orlando, 100 East Pine, a six-story, 82,892-square-foot office building in Downtown Orlando and the Cypress Park portfolio of five industrial buildings totaling 256,838 square feet. At year-end 2016, the overall Orlando industrial flex market boasted an 8.2% vacancy rate with an immediate submarket vacancy rate under 4%. The Orlando market saw 2.3 million square feet of net positive absorption during the year, a trend that is expected to continue and put upwards pressure on leasing terms for the already restricted supply of available flex space. Significant regional infrastructure improvements and a pro-business climate have led to Orlando’s substantial growth over the past several years, another trend that is forecasted to continue in the long-term.

“Each of these acquisitions highlights our overarching investment strategy which relies upon making well-timed and careful investments in underachieving properties requiring the care of a skillful owner and operator to bring them to maximum profitability and efficiency,” said Stephen Cassidy, President of Denholtz Associates.  “The Silver Star Portfolio plays to our strength of acquiring multi-tenanted properties exhibiting operating inefficiencies and taking over the management of these properties to more effectively drive revenue and NOI growth.”

“With a comparatively lower occupancy at the Parkway Commerce Center, our experience with turning around multi-tenant properties will enable us to make strategic investments and properly market the available space to return the property to high occupancy and profitability,” added Cassidy. “Our presence in Florida continues to be driven by these types of opportunistic investments in well-located spaces that allow us to reposition assets to execute our multi-tenant investment strategy.”

PCC

Parkway Commerce Center

Silver Star

Silver Star Portfolio