Reich Brothers Buys Florida’s Largest Single-Building Warehouse
- Nov 20, 2019
Reich Brothers has purchased Transformco Distribution Center, Florida’s largest single-building industrial asset located in Ocala, Fla. ESL Investments sold the 1,937,892-square-foot asset for $70 million through its subsidiary Transform Holdco. Avison Young negotiated the deal on behalf of the seller.
Public records show the property, also known as Kmart Distribution Center, last traded in February for $58.4 million as part of the $5.2 billion Sears/Kmart bankruptcy sale. According to Ocala.com, Sears Chairman Eddie Lampert bought the asset through his ESL Investments hedge fund to clear it of all past debts and liens.
Transformco Distribution Center sits on nearly 170 acres at 655 SW 52nd Ave. The warehouse facility is close to State Road 40 and Interstate 75, with Ocala International Airport only 1.6 miles west. The immediate area holds other major distribution operators such as ClosetMaid, Chewy, AutoZone and FedEx.
Per the sale-leaseback agreement, Transform Holdco will continue to occupy and operate the warehouse supporting the Sears, Kmart and Hometown stores in the entire Southeast region. The 10-year lease includes the possibility for a 10-year renewal, according to Rebusiness Online.
Avison Young Principal & Managing Director Michael Fay and Principals Jay Ziv, John Crotty and David Duckworth, working alongside Vice President Brian de la Fé and Associates Berkley Bloodworth and Emily Brais, assisted the seller in the disposition. The team recently arranged the sale of two fully-leased warehouses totaling 59,687 square feet in Margate, Fla.