TAMPA, Fla.–(BUSINESS WIRE)–Loci Capital (“Loci”), a diversified real estate investment firm, today announced the acquisition of a six-building, 230,000-square-foot small-bay industrial portfolio in West Park, Florida, in partnership with Hersh Equity Group (“HEG”).
The portfolio, strategically located within the Fort Lauderdale MSA, consists of 116 suites averaging 1,000–2,000 square feet. The properties are positioned adjacent to a Home Depot and cater to the growing demand from small, service-oriented businesses.
Loci and HEG plan to execute a five-year business plan focused on bringing in-place rents to market rates. The plan also includes targeted property enhancements such as exterior painting, upgraded lighting, and improved signage.
Financing for the transaction includes $38 million of seller-provided debt at a fixed rate of 4.61% interest-only for five years, an attractive structure that enhances downside protection and positions the partnership for strong cash flow throughout the hold period.
“This investment aligns perfectly with Loci’s strategy of acquiring well-located, under-managed assets in partnership with specialized local operators,” said Dave Workman, Managing Principal at Loci Capital. “Small-bay industrial product in Broward County remains in high demand with minimal vacancy, and we are confident in our ability to unlock significant value.”
“We are excited to partner with Hersh Equity Group on this transaction,” added Mike Nauman, Loci Capital’s deal lead on the investment. “Their deep market knowledge and hands-on operating approach create a strong foundation for executing our business plan and achieving compelling returns.”
“Partnering with Loci Capital represents an important step forward for our firm,” said Juda Hersh, Managing Partner of Hersh Equity Group. “Our local expertise combined with Loci’s institutional platform will allow us to maximize the value of this portfolio while continuing to serve the needs of small businesses in this market.”
South Florida’s industrial market has benefited from robust population and business growth, resulting in over 60% rent growth since 2020 and shallow-bay vacancy levels of 2–3%. The partnership anticipates achieving a stabilized yield on cost of approximately 8% by year five, positioning the portfolio for an institutional exit.
About Loci Capital
Loci Capital is a Tampa-based real estate investment firm focused on acquiring and operating a diversified portfolio of industrial, multifamily, and hospitality assets across the United States. With over $1.3 billion in assets under management, Loci combines institutional discipline with local market expertise to deliver superior risk-adjusted returns.
About Hersh Equity Group
Founded in 2020, Hersh Equity Group specializes in the acquisition, management, and leasing of small-bay industrial properties across Florida. The firm currently manages more than 550,000 square feet of industrial space and is recognized for its responsive, tenant-focused approach to leasing and operations.
Contacts
Loci Capital
Casey Wilson, Head of Investor Relations
[email protected]
808.221.0074
