On the heels of making its debut in Los Angeles County with a $74 million purchase, Boston-based Intercontinental Realty Corp. picked up another Amazon-leased warehouse, this time in Lakeland, Fla.
Seller Ackerman & Co.—the original developer of the 710,962-square-foot building dubbed Dragstrip Logistics Center—pocketed more than $106 million for the recently constructed Class A asset, according to the Tampa Bay Business Journal. The buyer purchased the distribution center for one of its managed funds. Amazon’s commitment at the property stretches over 10 years.
Central Florida’s fast-paced industrial growth
A recent CBRE big-box report identified Central Florida as the second best-performing U.S. market in terms of growth for 2020, achieving an 8.0 percent growth rate. Phoenix topped the list at 9.1 percent, with CBRE defining ‘growth’ as overall net absorption divided by existing inventory.
The average direct vacancy rate dropped 1.8 percent year-over-year in Central Florida, according to the report, coming in at 7.9 percent. Most of the market’s nearly 100 million-square-foot inventory comprises smaller big-box facilities, in the 200,000- to 500,000-square-foot range.
Shiny, new facility
Completed in 2020, Dragstrip Logistics Center sits along the Interstate 4 Corridor, one of the fastest growing industrial hubs in Florida. Located at 8100 State Road 33 on a nearly 60-acre site, the facility is halfway between Tampa and Orlando.
(On a related note, the $2.3 billion infrastructure upgrade program named “I-4 Ultimate project”, comprising the rebuilding of 21 miles along the interstate, has been ongoing for more than six years and is finally nearing completion. The public-private investment will further enhance accessibility in central Florida.)
The Lakeland distribution center has a cross-dock design, with 40-foot clear heights, 146 dock-high doors, 185-foot truck court depths and ESFR sprinkler system. The property also includes 183 trailer drops and 858 van stalls.
Cushman & Wakefield’s Mike Davis, Rick Brugge, Stewart Calhoun, Rick Colon, Casey Masters, Dominic Montazemi and Zachary Eicholtz brokered the deal for the Atlanta-based seller. Intercontinental handled the transaction in-house, led by Steve Centrella.
Just last year, another Amazon distribution center in Central Florida changed hands, in Ocala, Fla. Lexington Realty Trust paid $58.4 million for the 617,000-square-foot facility near Interstate 75.