November 18, 2019— Avison Young’s Florida Capital Markets Group closed the $70 million sale of 1,937,892-square-foot Transformco Distribution Center, Florida’s largest single-building industrial asset, at 655 SW 52nd Ave. in Ocala. With a sale-leaseback agreement, Transformco continues to occupy the property to operate its main distribution center for the entire Southeast U.S. region supporting Sears, Kmart, and Hometown stores. The transaction brings the Capital Markets Group’s investment sales closed in the past 60 days alone to more than $300 million
Avison Young Principal and Miami Managing Director Michael T. Fay; Principals Jay A. Ziv, CCIM, SIOR, ALC; John K. Crotty, CCIM; and David Duckworth; Vice President Brian C. de la Fé; Associate Berkley Bloodworth; and Associate Emily Brais negotiated the sale on behalf of Transform Holdco. The buyer was Reich Brothers, a national industrial real estate firm specializing in manufacturing and distribution facilities across the U.S.
“Industrial continues to be the hottest asset type for investment in Florida, with Ocala standing out due to its quick access to every major market in the state as well as Georgia, South Carolina, and Alabama,” said Fay. “The Distribution Center offered Reich Brothers the opportunity to acquire a substantial, in-demand, cash-flow property in Central Florida.”
Despite new construction, Central Florida’s distribution market maintains a vacancy rate in the low single-digits. In addition to Transformco, major distribution users in Ocala include ClosetMaid, Chewy, AutoZone, FedEx, and several others. Less than five minutes from Interstate 75, the Sears Distribution Center is within a four-hour drive time of 14 million people.
Avison Young’s Florida Capital Markets Group also completed the disposition of the 126,336-square-foot Sears location at 9409 U.S. Hwy 19 in Port Richey, Florida.