State's largest distribution center sells for $126.5 million

A joint venture between IP Capital Partners and Torchlight Investors has acquired the state’s largest distribution center — a building of more than 44 acres under roof — for $126.5 million.

The Tampa-based investment sales team at commercial real estate brokerage Cushman & Wakefield negotiated the transaction on behalf of seller Reich Brothers, a company based in White Plains, New York.

Cushman & Wakefield Vice Chairman Mike Davis, Executive Managing Director Rick Brugge, Chairman Adam Spies and the firm’s Rick Colon, Kevin Donner, Dominic Montazemi, Zach Eicholtz and Brooke Tulley represented Reich Brothers.

The Florida Keystone Distribution Center, at 655 S.W. 52nd Ave., Ocala, measures 1.94 million square feet. The property, a former Sears, Roebuck & Co. Southeast distribution hub, is today fully occupied by Costco-Innovel, an affiliate of the Washington state discount warehouse chain, and Transformco.

The building was completed in 1990 and sits on 169 acres. It also features 36-foot-clear ceilings, 150 dock-high doors, seven drive-in loading doors and more than 2,400 trailer parking spaces. It also contains a high-end fire suppression system and is fully air conditioned.

In addition to brokering the sale, Cushman & Wakefield’s Jason Hochman, Brian Linnihan, Michael Ryan and Ron Granite arranged for $102 million in acquisition financing through Pimco on behalf of the buyers.

The Florida Keystone purchase marks the latest in a series of outsized deals completed by Boca Raton-based IP Capital Partners throughout the state.

In September 2019, for instance, IP Capital teamed with GEM Realty Capital, of Chicago, to buy the 444-room Grand Hyatt Tampa Bay and the adjacent 11-story Bayport Plaza office building.

That 3000 Bay Point Drive deal totaled $226 million and became the largest commercial real estate transaction in the Tampa Bay market that year.