Kennedy Investments is pleased to announce the sale of two warehouse properties in the Tampa International Airport submarket. On January 7th, 2020, the “Hanna I & II” properties were sold to Dogwood Holdings L.P. for $12M. Kennedy Investments was represented by Rick Brugge of Cushman & Wakefield.
Hanna Warehouse I, a ~70K sq. ft. concrete tilt wall warehouse in an excellent sub-market, was purchased with vacancy in 2008 in for $2.8 million. Kennedy Investments renovated its tired 1970’s aggregate façade and made improvements to the property, attracting superior long term tenants. Hanna I was sold for $6.6 million ($95 sq. ft.), with the deal generating a 13.5% annual return over its 11-year hold.
Hanna Warehouse II (also ~70K sq. ft.) adjoined Hanna I and was purchased by our real estate investment fund, KI Florida Fund I, LLC, for $2.4 million in May of 2017. Hanna II was sold for $5.4 million after being owned 31 months, generating a 70% deal IRR and returning an equity multiple of 2.89X to investors, net of fees.
Both buildings housed industrial businesses catering to growing commercial and residential construction demand in Tampa Bay. Hanna I tenants included UMI Stone, an international stone and marble distributor, and Spaces Group, a commercial office furniture distributor and installer. Hanna II’s tenants included Vivint Solar – a residential solar power installation company, Wurth – a local distributor for Lowes, Home Depot and other hardware services, and HVAC contractor Y2Kool.
We continue to pursue opportunistic and value-added commercial real estate investments Florida, and are in the process of finalizing commitments for our second value-added commercial real estate fund, KI Florida Fund II. Accredited investors are encouraged to contact us for more information.
