Clearwater, Fla., industrial portfolio sells for $23.5 million

Colliers announced the sale of the 62nd Street Industrial Portfolio, a two-building industrial portfolio totaling 202,622 square feet, located at 14480 and 14550 62nd Street N in Clearwater. The Bromley Companies acquired the property for $23.5 million from a partnership between Blue Steel Development and Dubuque Capital.

Robyn Hurrell and Kyle Kidd of Colliers represented the seller in the transaction. The Bromley Companies also worked with Colliers Debt & Structured Finance, who, following a highly competitive process, arranged the acquisition financing through a non-recourse bank. Nathan Lynch and Mike Sogluizzo advised on the execution.

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Located within the highly supply-constrained Gateway submarket of Pinellas County, the portfolio was 75% occupied at the time of sale and included approximately 51,000 square feet of vacancy. The portfolio also included a 2.3-year weighted average lease term, a 94% mark-to-market opportunity across the existing rent roll, cross-dock loading, fully fenced industrial outdoor storage (IOS) and 26- to 30-foot clear heights.

“The real estate itself told the story on this one,” said Hurrell, executive vice president with Colliers. “Once groups got through the buildings and saw how these tenants were actually operating within the space, the opportunity became extremely compelling. Costa Custom Boats currently manufactures high-end open-water vessels out of the property, which serves as a mission-critical manufacturing facility and headquarters operation. In addition, Knight Broadband has approximately 30,000 square feet alongside roughly 1.5 acres of IOS on the southern portion of the property, which is an incredibly difficult real estate combination to replicate in Pinellas County today.”

The transaction attracted significant interest from value-add industrial investors pursuing opportunities with embedded rental upside in highly constrained infill markets. While the offering carried near-term rollover exposure and vacancy risk, investor interest was driven by the portfolio’s functionality, operational utility and the limited availability of comparable industrial product within Pinellas County.

Costa Custom Boats, the portfolio’s largest tenant, occupied more than 54,000 square feet across both buildings at the time of sale. The broader tenant roster reflects the local and regional industrial users that continue to drive demand throughout Pinellas County’s infill industrial market.

The ownership partnership originally acquired the property in August 2019 from Pinch-A-Penny Pool Supplies through a short-term sale-leaseback structure, effectively purchasing a known vacancy with significant repositioning and lease-up risk. Over the course of its ownership, the partnership transformed the project into a functional multi-tenant industrial asset serving a diverse group of operating businesses throughout Tampa Bay.