Flagler Center + Lakeside Portfolio (Jacksonville FL)
12740 Kenan Drive, Jacksonville, FL, 32258, US
71,033 m²
Jones Lang LaSalle ("JLL") is pleased to exclusively offer the opportunity to acquire La Quinta (the "Property," "Portfolio," or the "Buildings"), an infill, shallow bay industrial portfolio consisting of two shallow bay warehouses totaling 61,200 SF with 5,400 SF of self storage in Orlando, FL. The Property is conveniently situated just 10 minutes away from MCO airport and provides exceptional accessibility to FL's Turnpike less than 5 minutes away. This central location enables users to conveniently serve Florida's major demand drivers, including globally-renowned theme parks, Orlando International Airport (FL's most traveled airport), and access to over 3.5 million consumers within a 60-minute drive.
The Building's functionality and convenient location have led to strong leasing performance as evidenced by an average downtime of 1.3 months, minimal concessions, and an average rental premium of 30% upon lease expiration. This strong property performance is supported by a diversified rent roll of 18 tenants with no tenant occupying more than ~8% and a average tenant size of 3,128 SF, catering to the deepest pool of tenant demand in Orlando and reducing major shifts in occupancy and cash flow.
This investment is further bolstered by the compelling shallow bay market fundamentals within the greater Orlando area. Currently, there is no competitive supply under construction or proposed and of 6,900 existing buildings within the MSA only 220 (3%) could accommodate tenant requirements less than or equal to 25,000. Further, more than 60% of all industrial leasing YTD in Orlando has been in spaces 25,000 SF or smaller. This supply and demand imbalance is even more acute for spaces <5,000 SF.
La Quinta Business Center offers a coveted opportunity to acquire an infill, highly functional multi-tenant industrial asset in one of the US's best performing markets at a discount to replacement cost, with strong current income, a dearth of competive supply, and potential for substantial value creation from above-market contractual escalations and continued rent appreciation.
Strong In-Place Cash Flow With Immediate Upside
Compelling Orlando Shallow Bay Fundamentals
Mark To Market Opportunity With Average In-Place Rents 10% Below Market
Highly Functional Assets with Diversified Rent Roll