Stable income with clear, time-driven NOI expansion in an infill submarket with limited supply and high tenant stickiness.
Two-building industrial asset totaling ~11,171 SF across two parcels in SoDo (South Downtown Orlando), configured for both customer-facing taproom operations and rear production/warehouse capacity. Zoned ORL-AC-2/SP allowing continued brewery/taproom use as well as other adaptive industrial retail and light industrial uses in a supply-constrained infill submarket with limited comparable inventory.
100% leased to a single operator since 2019. Tenant has invested approximately $150,000+ in permanent improvements including brewing infrastructure and an industrial walk-in freezer, creating high location dependence and a strong incentive to renew. Current rent of $12,000/month ($144,000/year) is below market for brewery-capable industrial retail in SoDo, positioning the asset with embedded rent growth at renewal without requiring vacancy, turnover, or repositioning.
Landlord responsibilities are limited to property taxes (~$20,330/yr) and building insurance (~$1,500/yr). Tenant pays utilities and carries commercial liability insurance. Roofs and HVAC systems were replaced within the past year, minimizing near-term capital expenditure exposure.
Based on SoDo submarket lease rates in the $18–$22/SF range for similar industrial/taproom configurations, a renewal structured at market supports a stabilized yield in the ~6.0%–7.5%+ range, compared to the ~4.1% in-place cap rate.