{"id":94174,"date":"2025-12-23T21:46:08","date_gmt":"2025-12-23T21:46:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-fl\/94174\/"},"modified":"2025-12-23T21:46:08","modified_gmt":"2025-12-23T21:46:08","slug":"tampa-industrial-property-recapitalized-in-42-5m-dst-deal","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-fl\/94174\/","title":{"rendered":"Tampa industrial property recapitalized in $42.5M DST deal"},"content":{"rendered":"

A New Jersey-based real estate firm has selected Tampa<\/a> as the launch market for its first Delaware Statutory Trust, signaling continued confidence in the region\u2019s industrial real estate fundamentals.<\/p>\n

Denholtz, a Red Bank, New Jersey\u2013based developer and owner-operator, recapitalized its Sweetwater Business Center in Tampa by placing the property into a newly formed Delaware Statutory Trust, known as DX SB Industrial I DST. <\/p>\n

The structure allows investors to participate in the asset through tax-deferred exchanges.<\/p>\n

The nine-building industrial complex totals 225,789 sq ft and is located along W. Waters Ave., about two miles north of Tampa International Airport and near the Veterans Expressway. Downtown Tampa<\/a> is roughly 12 miles south.<\/p>\n

Denholtz acquired the property in 2020 for $26.54M, when it was approximately 90% leased, financing the purchase with an $18.6M loan from Citizens Bank.<\/p>\n

A recapitalization built on Tampa fundamentals<\/p>\n

As part of the recapitalization, Denholtz secured a new $24M mortgage from Bank of Montreal, placing a $42.54M valuation on the property. <\/p>\n

The loan has a 10-year term, is interest-only and carries a 6.2% coupon. It was included in a recent CMBS conduit transaction.<\/p>\n

Sweetwater Business Center is currently 87.35% occupied. Six of the nine buildings are fully leased, while the remaining three range from 28% to 90% occupancy.<\/p>\n

Major tenants include The Home Depot, BayCare Health System and Unified Women\u2019s Healthcare. <\/p>\n

READ: TAMPA BAY REAL ESTATE NEWS<\/a><\/p>\n

Leases at the property have a weighted average remaining term of 3.69 years and generate average annual rents of $18.29 per sq ft.<\/p>\n

Over the 12 months through July, the property produced $2.52M in net operating income, equating to a recapitalization cap rate of approximately 5.92%.<\/p>\n

In offering materials, Denholtz said it plans to increase net operating income by improving occupancy, growing rents where possible and making targeted capital improvements to drive tenant demand. <\/p>\n

The firm expects a hold period of up to 10 years.<\/p>\n

What is a Delaware Statutory Trust?<\/p>\n

A Delaware Statutory Trust, or DST, is a legal structure that allows multiple investors to pool capital to acquire fractional ownership in large, professionally managed real estate assets.<\/p>\n

DSTs are commonly used as replacement properties in 1031 exchanges, enabling investors to defer capital gains taxes by reinvesting proceeds from the sale of real estate into a like-kind asset. <\/p>\n

Investors become beneficial owners of the trust, rather than direct owners of the property.<\/p>\n

READ: MORE TAMPA NEWS<\/a><\/p>\n

Because DSTs are professionally managed, investors do not take on landlord responsibilities such as leasing, maintenance or day-to-day operations. <\/p>\n

The structure is designed to provide passive income potential and tax deferral while offering access to institutional-scale properties.<\/p>\n

DSTs have gained traction among investors seeking hands-off exposure to commercial real estate, particularly in high-growth markets.<\/p>\n

Expanding access to individual investors<\/p>\n

Historically, Denholtz raised capital primarily from institutional investors. In recent years, the firm has expanded its focus to accredited individual investors.<\/p>\n

The Sweetwater DST was offered through Orchard Securities of Pleasant Grove, Utah, and raised $18.54M in equity, subject to a $100K minimum investment.<\/p>\n

To support the offering, Denholtz launched Denholtz Wealth Exchange and appointed Jennifer McCool as executive vice president and head of capital markets. <\/p>\n

READ: Tampa Bay\u2019s growth is no accident: 2026 outlook<\/a><\/p>\n

McCool previously worked at Kushner Cos., where she focused on capital raising for its investment management platform.<\/p>\n

Denholtz currently manages approximately $2B in assets nationwide.<\/p>\n

Why it matters for Tampa Bay<\/p>\n

The transaction highlights Tampa\u2019s continued appeal to real estate operators pursuing long-term investment strategies.<\/p>\n

Even as capital markets remain selective, Tampa\u2019s proximity to transportation infrastructure, steady population growth and strong tenant demand continue to attract investment in industrial assets.<\/p>\n

For Tampa Bay<\/a>, deals like this reinforce a broader pattern: national firms continue to view the region as a stable, scalable market for deploying capital and testing new investment structures.<\/p>\n

Stay Informed<\/p>\n","protected":false},"excerpt":{"rendered":"A New Jersey-based real estate firm has selected Tampa as the launch market for its first Delaware Statutory…\n","protected":false},"author":2,"featured_media":94175,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[39436,7897,5751,5752,6184,178,25849,276,39076,1724,24881,17016,20224,17399,135,1526,1703,13693,137,136,11863,278,1798],"class_list":["post-94174","post","type-post","status-publish","format-standard","has-post-thumbnail","category-tampa","tag-acquisitions","tag-banking","tag-business-relocation","tag-commercial-real-estate","tag-downtown-tampa","tag-economic-growth","tag-financial-services","tag-hillsborough-county","tag-infrastructure-development","tag-investment","tag-logistics","tag-multifamily","tag-office-space","tag-port-tampa-bay","tag-tampa","tag-tampa-bay","tag-tampa-bay-business","tag-tampa-growth","tag-tampa-headlines","tag-tampa-news","tag-tampa-real-estate","tag-top-stories","tag-transportation"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-fl\/wp-json\/wp\/v2\/posts\/94174","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-fl\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-fl\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-fl\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-fl\/wp-json\/wp\/v2\/comments?post=94174"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-fl\/wp-json\/wp\/v2\/posts\/94174\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-fl\/wp-json\/wp\/v2\/media\/94175"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-fl\/wp-json\/wp\/v2\/media?parent=94174"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-fl\/wp-json\/wp\/v2\/categories?post=94174"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-fl\/wp-json\/wp\/v2\/tags?post=94174"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}