Transwestern doubles its industrial portfolio
By Yudislaidy Fernandez
Commercial realty firm Transwestern has been appointed by Cabot Properties to manage close to 4 million square feet of industrial space, more than doubling the firm's current industrial portfolio.
A total of 25 industrial properties spread throughout Florida were part of the deal, with most concentrated in South Florida.
The industrial portfolio of Cabot, a leading investor, developer and operator of industrial properties in the US, was previously managed by an affiliate of commercial realty firm Grubb & Ellis, from which Transwestern has brought four professionals who handled the portfolio when it was in their hands, said Walter Byrd, managing director at Transwestern along with Ben Eisenberg.
"We did hire a couple of main people who have longstanding relationships with Cabot," Mr. Byrd said. "The support we give our management people that was one of the things that tilted it" for Cabot, when deciding to re-assign this industrial portfolio.
With this new assignment, which was to become official June 1, Transwestern boasts 6.5 million square feet of institutional property management within Florida's industrial market.
The last major portfolio Transwestern took over was a 3.4 million-square-foot Florida portfolio belonging to RREEF, which the company owns on behalf of its institutional clients, about 18 months ago.
Transwestern's focus and expertise in property management contributed to obtaining this 3.9 million-square-foot industrial management portfolio.
"It's clearly the way we do business," Mr. Byrd said. "Property management is a core competency. It's an important component to what we do."
Its regional offices, in Miami, Fort Lauderdale and Orlando, are to oversee the portfolio within those areas, for which some additional hires have been made.
About two-thirds of Cabot's industrial portfolio is in South Florida and one-third in Central Florida.
The properties include 267,950 square feet at Turnpike Distribution in Medley, the 113,191-square-foot Volvo Building in Boca Raton, 363,000 square feet at Crownpointe Park in Orlando, and 569,000 square feet at Alta Lakes I, II, III and IV in Jacksonville.
In Florida, Transwestern oversees the leasing and management of a combined 15.8 million square feet of commercial space and there's room for more.
"We expect to continue to grow significantly over the next couple of years," Mr. Byrd said.
But industrial property management has its challenges, he noted, as usually the property portfolios are spread through different geographic areas, require managing more contracts with outside vendors, and the compensation is different as management fees are based on a percentage of growth revenues.
The plan is to successfully execute this management contract, which could lead to more business opportunities in the future.
"The expectation is that as they continue to grow, we continue to expand this portfolio," Mr. Byrd said. "We now have two statewide portfolios for major institutional owners, and our hope is to expand that with more institutional industrial owners."
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