Home Featured Plymouth Industrial REIT Expands in Jacksonville Market With $97M Buy

Plymouth Industrial REIT Expands in Jacksonville Market With $97M Buy

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Plymouth Industrial REIT Inc. has signed a definitive agreement to acquire a 20-building, 1.1 million-square-foot light industrial and flex portfolio in Jacksonville, FL for $97.1 million in cash. The acquisition, which is expected to close in mid-December 2018 subject to customary closing conditions, is projected to provide an initial yield of 8.4%.

Plymouth expects to fund the acquisition with approximately $34 million in proceeds from a recently announced strategic investment from an affiliate of Madison International Realty Holdings LLC and approximately $63 million in short-term borrowings from KeyBank.

The portfolio consists of three business parks totaling 20 buildings and 1.1 million square feet of institutional quality light industrial and flex assets. The buildings are in close proximity to one another in the highly desirable Southside submarket of Jacksonville, centered by the intersection of Interstate 95 and J. Turner Butler Boulevard. The properties are currently 96% leased to 40 tenants. The portfolio has a weighted average lease term of over three years remaining and contains national and regional tenants such as Comcast, Veritiv, Cintas, Alstom, Staples, Cardinal Health, The Home Depot, Johnson Controls, Safelite AutoGlass and Shaw.

Jeff Witherell, Chairman and Chief Executive Officer of Plymouth Industrial REIT, noted, “We have a demonstrated track record of sourcing large attractive opportunities in thriving industrial markets. These buildings in Jacksonville are no exception and will be a strong addition to our overall portfolio with a mix of stability and upside potential. Based on the first-year projected net operating income, this acquisition alone would represent an increase of more than 25% over and above our projected full year 2018 NOI.”

Pendleton White, Jr., President and Chief Investment Officer, added, “We have targeted Jacksonville for some time and coveted a meaningful presence that gives us immediate scale, infill locations and a mix of light industrial and flex buildings to accommodate a wealth of tenants. Jacksonville is the third fastest growing market in the country with the one of the tightest industrial vacancies and lowest amount of inventory under construction of any market we have analyzed in the Southeast. With nearly one third of the space up for renewal over the next three years, we have an excellent opportunity to take advantage of these strong fundamentals in the Southside submarket and drive rental growth.”