East Capital Partners and Tramview Capital Management have completed the sale of Airport Jax Small Bay Portfolio, an eight-building industrial property totaling 230,000 square feet in Jacksonville, Florida.
The roughly 29-acre portfolio is located in Jacksonville’s Northside industrial submarket, less than one mile from Interstate 95 and approximately 2.5 miles from Jacksonville International Airport. The location provides access to major transportation infrastructure and positions the property to serve local and regional users, including businesses with last-mile distribution needs.
Built between 2001 and 2011, Airport Jax includes a mix of front-load and cross-dock configurations with clear heights ranging from 19 to 25 feet. The property also offers parking and dedicated industrial outdoor storage, features that broaden its potential use among small-bay industrial tenants.
East Capital Partners and Tramview acquired the portfolio through an off-market transaction in July 2023. At the time of the acquisition, the property was fully leased to a diversified tenant base, but rents were significantly below prevailing market levels, creating an opportunity to increase income through leasing and active asset management.
During the venture’s ownership, approximately 248,000 square feet of new and renewal leases were executed. Rental rates on those transactions increased significantly compared with average in-place rents when the portfolio was acquired.
The owners also secured site plan approval for an additional 65,000-square-foot light industrial building on 6.5 acres of excess land. That acreage currently produces ancillary parking and storage income, while the development approval gives the property another potential avenue for future growth.
The combination of higher rents, longer lease terms and development potential was central to the investment strategy, according to the firms. The sale price and identity of the buyer were not disclosed.
“This transaction represents exactly the type of investment strategy East Capital Partners seeks to execute — sourcing high-quality off-market opportunities, creating value through active asset management, and delivering a successful outcome for our investors,” said David Archibald, co-founder of East Capital Partners.
Archibald also credited Tramview’s partnership throughout the investment, citing the firms’ collaborative approach from the initial acquisition through the eventual disposition.
Robert Davies, managing partner of Tramview Capital Management, said the venture acquired the infill property at an attractive basis and focused on moving rents toward market levels while extending the portfolio’s average lease term.
“East Capital Partners did an excellent job of leading execution of our venture’s business plan to bring rents to market levels and extend out the portfolio’s average lease term, dramatically increasing NOI and value,” Davies said, adding that the strategy enabled the partnership to generate a strong return for investors.
The transaction comes as well-located small-bay industrial properties continue to serve a range of local and regional businesses that require flexible space and proximity to transportation networks. Airport Jax’s combination of smaller industrial buildings, outdoor storage and access to I-95 and Jacksonville International Airport helped support the venture’s leasing strategy during its ownership.
East Capital Partners is a privately held real estate investment firm focused on acquiring and developing off-market commercial properties throughout the Eastern United States. Its team has more than $7 billion of investment experience across major property types and the capital stack. The firm invests using its own balance sheet and on behalf of institutional investors and select high-net-worth individuals, pursuing strategies that include leasing, operational improvements, repositioning, adaptive reuse and ground-up development.
Tramview Capital Management is a value-oriented real estate investment management firm targeting institutional-quality properties in growth markets across the United States. Its leadership has overseen and managed approximately $5 billion of equity invested globally across property types and the capital stack on behalf of institutional clients, wealth management firms and high-net-worth individuals.