Turnpike Logistics Center_Property for Sale

19800 S Obrien Rd, Groveland, FL, 34715, US

Turnpike Logistics Center

Asset description

Jones Lang LaSalle Americas, Inc. ("JLL") has been exclusively retained to market for sale Turnpike Logistics Center (the "Property") - a Class A 977,441 SF cross-dock industrial distribution center located in Groveland, FL, within the Orlando MSA.

The Property is 100% leased by Duke Energy (NYSE: DUK), a Fortune 150 company and America's largest power distributor. As an investment-grade tenant with a BBB+ rating from S&P, Duke Energy boasts the largest customer base in the U.S. and leads its industry in megawatt generation. The company's electric utilities serve 8.4M customers throughout the Southeast and Midwest US, and collectively generate approximately 54.8K MW of energy. Duke Energy has occupied the space since 2023 and chose to locate their Florida distribution hub in this building as it is one of the only buildings of its size in Central Florida that receives power from Duke Energy.

Turnpike Logistics Center's central location relative to the state of Florida provides exceptional connectivity to 102% of the states population in under 5 hours and the entirety of Duke Energy's Southeastern U.S. service area within 10 hours. Connectivity is provided via FL's Turnpike (1.5 miles), US Route 27 (0.7 miles), I-4 (27 miles), and I-75 (33 miles).

Turnpike Logistics Center offers investors the rare opportunity to acquire a mission-critical, state-of-the-art industrial distribution center with contractual rent from an established Fortune 150, investment grade credit tenant with strong in place cash flow and 3.25% annual escalations.

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Attributes

Building area net

977,441 sf

WALT

8.9 years

Occupancy

100%

Tenants

Duke Energy

Year built

2023

Media

Investment highlights

MISSION CRITICAL LOCATION WITH ENTRENCHED TENANCY

Duke Energy's lease requirements suggest a likely above-market renewal probability given the lack of viable alternatives that include the following requirements: proximity to the FL Turnpike & US-27, power provided by Duke Energy, a central location relative to FL to insulate this mission-critical facility from the impacts of natural disasters, and abundant outdoor storage, among others.

Turnpike Logistics Center serves as the Company's FL HQ and is their only distribution center South of the Carolinas.

Turnpike Logistics Center fronts U.S. Route 27 which runs north through FL, TN, KY, OH, and IN which are 5 out of Duke Energy's 7 primary service markets making transfer of inventory from their other Southeastern U.S. distribution centers and manufacturing facilities seamless.

Within Duke Energy's FL service area there are only 7 comparable 1M SF facilities and none of them meet the previously mentioned criteria, solidifying Turnpike Logistics Center as a mission critical asset for their operations.

ATTRACTIVE VALUE PROPOSITION & ACQUISITION BASIS

Offered at a discount to replacement cost ($125+ PSF) and recent comparable single-tenant transactions in the Southeastern U.S. ($120+ PSF) providing a long-term competitive advantage for new ownership.

STRONG & STABLE IN-PLACE CASH FLOW

New construction and significant Landlord/Tenant improvements limit near-term capital requirements and landlord responsibilities for new ownership.

Landlord-favorable NNN lease structure with $5.4M in-place NOI and 3.25% annual escalations.

21% 7-year NOI growth & 36% 10-year NOI growth backed by investment grade credit.

SUPERIOR CENTRAL FLORIDA & SOUTHEASTERN U.S. CONNECTIVITY

The Property is less than 90 minutes from all major Central Florida logistics infrastructure including Orlando’s CBD, Downtown Tampa, Space Coast, Orlando International Airport, Tampa International Airport, Port Canaveral, and Port of Tampa Bay via major transportation arteries: Florida’s Turnpike, U.S. Route 27, I-4, I-75, and I-95.

Turnpike Logistics Center provides access to the entirety of Central Florida and over 10M people in under 2 hours.

Within 10 hours all of Duke Energy’s Southeastern markets can be reached providing increased operational efficiency and reducing distribution lead times.