Citimark Snags 332KSF Tampa Industrial Portfolio

By Barbra Murray

Citimark Inc. continues to execute its strategy of snapping up infill industrial properties across the U.S., and HFF continues to help the real estate investment and construction company facilitate its goals. HFF recently orchestrated financing for Citimark’s acquisition of a 332,000-square-foot industrial portfolio in Tampa, Fla., from Westmount Realty Capital LLC.

Commercial real estate and capital markets services HFF placed the acquisition financing with JP Morgan Asset Management after a highly focused campaign. “For this opportunity we specifically targeted the life company market as it has proven throughout this year to be the best source for financing industrial assets when pricing, proceeds, and overall deal flexibility are taken into account,” Ken Martin, senior director with HFF, told Commercial Property Executive. “The specific life companies that we targeted had a strong interest in the financing and allowed us to drive a great end outcome for our client.”

Located in the coveted Westshore/Airport submarket, Pioneer Industrial Park and Sunstate Industrial Park comprise the 14-building portfolio, which was developed in the 1980s and substantially renovated in the years since. Occupying 9.6 acres along Pioneer Park Blvd., the 150,200-square-foot Pioneer Park encompasses six front-load distribution warehouses. Less than two miles away sits Sunstate Park, offering six showroom and flex buildings and two rear-load facilities on Sunstate St. and Waters Ave.

The industrial campuses are 94.5 percent leased, marking a considerable increase from the portfolio’s 75 percent lease level, when Westmount snapped it up in 2013.

What lenders want

The Pioneer-Sunstate transaction represents Citimark’s expansion of its footprint into Tampa, and follows by eight months the company’s entrée into the Atlanta market with the purchase of a 410,000-squre-foot industrial portfolio. HFF landed acquisition financing for the Atlanta deal, too, reeling in an $11.1 million loan. The lending community has long been quite keen on Citimark, and the Tampa transaction was no exception.

“The first thing that the lenders focused on was the quality sponsorship that Citimark brought to the table; Citimark has a 35-year track record of owning and operating industrial assets in markets across the Midwest and Southeast,” Martin said. “This was Citimark’s third acquisition in the past 18 months; and when including developments, they have added 1.5 million square feet to their portfolio over that same time span.”

Tampa was a magnet for investors, as well. The average vacancy rate for industrial properties in the metro area is an enviably low 5.2 percent, and dropping, according to a third quarter report by commercial real estate services firm JLL. And in the Westshore/Airport submarket, asking rents are rising at a rapid pace, with rates for warehouse/distribution space at a 10-year high. Martin added, “The very strong Tampa industrial market with its high barriers to entry attracted not only Citimark to the acquisition but lenders to the financing.”

Image courtesy of HFF