Disposition Generates Favorable Outcome for Investors
Following Value-Added Business Plan Execution
May, 20 2024 – CenterSquare Investment Management is pleased to announce the sale of a Service Industrial Portfolio consisting of eight properties located in Jacksonville, FL. Acquired in December 2020, the Portfolio encompasses 380,589 square feet of Service Industrial space strategically located in the coveted, high-barrier-to-entry West Side and South Side infill submarkets of Jacksonville.
Capital improvements made to the Portfolio following its acquisition included restriping all parking lots, improving property exteriors, upgrading interior lighting, making roof repairs, and installing new signage. The Portfolio was 100% leased at the time of acquisition with below-market rents, resulting in mark-to-market (MTM) upside. In January 2024, the portfolio was marketed for sale, and a buyer was selected following a competitive process. In May 2024, a sale was completed at a price that yielded favorable returns for investors.
CenterSquare’s confidence in the Service Industrial sector is deeply rooted in its robust fundamentals, representing the largest mismatch between limited new supply and growing demand for smaller industrial tenants. Short-duration weighted average lease terms (WALTs) and in-place, below-market rents create attractive opportunities for investors seeking in-place cash flow with downside protection and strong MTM upside, underscoring the sector’s resilience.
“This latest transaction marks another outsized realization within the Service Industrial sector,” said Rob Wasenius, Senior Vice President of Private Real Estate at CenterSquare. “The sector’s ability to maintain high occupancy rates with a durable and diverse tenant base that drive the local economy highlights its favorability and reinforces our belief in the sector’s long-term growth potential. We are excited to further leverage the momentum of these dynamic and versatile properties as we continue to drive value and generate superior returns for our investors.”
