The real estate investment platform RealtyMogul announced the opening of the pledging window for an equity investment in an industrial building in St. Petersburg, Florida.
The Skyway Industrial Park is a 232,206-square-foot Class B industrial facility in the growing St. Petersburg/Tampa Bay submarket. Built in 1989, the industrial facility offers tremendous upside by addressing deferred improvements and improving cash flow through a progressive rent increase. With the sale of the property expected to be completed in May, the new owners will assume an occupancy rate of 98.6%.
Within the submarket, asking rents for industrial space comparable to Skyway begins at $8 per square foot of net rentable space with most spaces leasing for between $9 and $11 per square foot. Skyway’s average rent breaks down to $5.11 per square foot of net rentable space across nine tenants, roughly 30% to 50% below market, leaving substantial room for growth. Offering sponsor The Wideman Co. plans to address minor deferred cosmetic improvements and fulfill tenants’ needs so that when the majority of the leases expire between 2023 and 2025, rents can be brought up to market rate.
The Tampa Bay/St. Petersburg submarket has seen substantial population growth over the last two years. Between 2020 and 2022, 655,221 people migrated from out of state with the majority of the transplants moving to the area surrounding Skyway Industrial. As a result, the Pinellas County industrial market has become increasingly competitive with double-digit rent growth over that same time frame and a vacancy rate far below the national average at 1.6%.
RealtyMogul will host be hosting a live webinar for Skyway Industrial Park at 11 a.m. PST on April 26 with the investment window opening 30 minutes into the webinar.
- Minimum investment: $35,000
- Target internal rate of return (IRR): 17.7%
- Target equity multiple: 1.84x
- Target cash yield: 6%
- Target investment term: four years
The Wideman Group is an Orlando-based real estate investment firm with over 50 years of experience in ownership and management of commercial real estate throughout the Southeast and Sun Belt states. Wideman is an expert in the multitenant industrial flex property space with a portfolio spanning over 4 million square feet of space valued at over $750 million.
Photo courtesy of RealtyMogul