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BUYER: Gunn Highway REEP LLC (principals: Matthew Shaw, Allen Crumbley and D. Dewey Mitchell), Land O'Lakes
SELLER: Paladin Properties LLC
PROPERTY: 1838 and 1842 Gunn Highway, Odessa
PRICE: $3 million
LAW FIRM ON DEED: David Gilmore Esq., New Port Richey
PLANS, DESCRIPTION: An investment group, managed by Matthew Shaw, Allen Crumbley and D. Dewey Mitchell, purchased two industrial buildings on Gunn Highway south of State Road 54 for $3 million.
The price equated to $54 per square-foot. The purchase yielded a blended capitalization rate, which measures the speed at which the purchase price is paid down by rental income, of 9.5%.
The two 28,000-square-foot buildings are leased to Pro Tech Monitoring and the seller, Paladin Properties LLC.
The purchase also included a parking lot that could also be developed into a 20,000-square-foot building.
Renee Dyer and Shaw of Prudential Commercial Real Estate FL handled the transaction.
“We acquired the income-producing portion of the property,” Shaw says. “This was a convoluted purchase. It wasn't just an acquisition, it was also a redevelopment. We had to section portions of the property off. There were negotiations for association [documents].”
One of the seller's goals from the deal was the immediate income and inexpensive rent, according to Shaw. He estimates that Paladin Properties is committed to a rental rate at 50 to 60% below the market rate.
The owners, in various separate partnerships have a portfolio of 10 to 15 other commercial properties.
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