STAR Industrial

7935-7995 114th Ave & 7875 114th Ave N, Largo, FL, 33777, US

Description

Jones Lang LaSalle (“JLL”) has been exclusively retained to market for sale the leasehold interest in STAR Industrial (the “Property” or “Tampa STAR”) – four infill, light industrial properties totaling 174K SF in Largo, FL within the South Pinellas submarket of the Tampa MSA.

The Property is 82% occupied by five regional/national tenants spanning the manufacturing, distribution, and defense industries, offering a diversified tenant roster with 2.5 years of WALT remaining. Tampa STAR generates strong cash flow and an in-place NOI of $1.3M supported by landlord-favorable NNN leases with annual escalations averaging 3.4%.

What distinguishes this opportunity is the immediate value-add potential through continued lease-up and 15% MTM paired with a short WALT which enables rapid repositioning in a submarket experiencing tremendous rent growth and capital appreciation due to its high barriers to entry.

STAR Industrial benefits from unparalleled last-mile logistics capabilities via immediate access to major transportation arteries including I-275, U.S. 19, and U.S. 92. This strategic location within Florida’s most densely populated county provides access to over 4.9 million people within 60 minutes and sits less than 40 minutes from all critical Tampa logistics infrastructure including two airports, two seaports, and a CSX rail line. Moreover, the Property is adjoining the 96-acre Young-Rainey STAR Center which the County has slated for redevelopment through a public-private partnership structure to transform this technology campus into a revitalized and booming industrial hub.

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Attributes

Number of buildings

Building area net

16,200 m²

Occupancy

82%

WALT

2.5 years

Media

Investment Highlights

Attractive Value Proposition & Acquisition Basis

Offered at an attractive acquisition basis with a 40%+ discount to replacement cost ($160+ PSF excluding land) and recent comparable Central Florida transactions ($168+ PSF) providing a long-term competitive advantage for new ownership.

Strong & Stable In-Place Cash Flow with Immediate Value-Add Potential

15% MTM paired with 2.5-year WALT allows new ownership to unlock significant value quickly.
86% 5-year NOI growth & 132% 10-year NOI growth.

Ability to Scale in the Highest Barrier to Entry Market in FL

Totaling 174,373 SF, Tampa STAR offers a rare opportunity to assemble a diverse light industrial campus in one of the best-performing and highest barriers to entry markets in the country.
STAR Industrial’s versatile campus environment provides the perfect opportunity for new capital or existing owners to increase operational efficiency and tenant/product diversification for their FL portfolio.

Strategic Location in Florida’s Most Densely Populated County Provides Unparalleled Last-Mile Logistics Capabilities

The Property is less than 40 minutes from all major Tampa MSA logistics infrastructure including St. Pete- Clearwater International Airport, Tampa International Airport, Port of St. Petersburg, and Port of Tampa Bay via major transportation arteries: I-275, U.S. 19, and U.S. 92.
Tampa STAR’s strategic location within the state’s most densely populated county by over 2X (3,500+ people per square mile) provides unparalleled last-mile distribution capabilities and access to 4.9M+ people and the entirety of the Tampa MSA in under 90 minutes.

Rapid but Sustainable Growth in One of Tampa’s Best Performing Submarkets

South Pinellas performance throughout the same period is even more impressive with over 119% industrial rent growth (17% CAGR) and an average rent of $12.88 PSF NNN which is over 23% higher than the broader MSA average.
South Pinellas is one of the most land and supply constrained submarkets in the nation evident by ZERO product under construction, ZERO deliveries since 2022, and only 114K SF delivered over the past 10 years.
The Young-Rainey STAR Center directly across the street is slated for redevelopment, will serve as a major catalyst for the pocket, and will add tremendous value to STAR Industrial.