Avistone Acquires Four Business Park Properties in Columbus, Ohio

By David Sheets | Jul 11, 2016 News / Portfolio
Columbus Ohio Commercial Real Estate

Avistone, LLC acquired four multi-tenant industrial properties in the Columbus, Ohio market. Two of the properties, Lakeview Commerce Center and Creek Run Commerce Center, were acquired by the Avistone Industrial Property Fund I. The other two properties, Tuller Ridge Commerce Park and Dearborn Commerce Center, were purchased and financed individually. The four properties total 398,762 square feet of multi-tenant flex / industrial space and are located in the Northeast and Northwest Industrial Sub-markets which are easily accessed by I-270 and I-71. Built between 1986 and 1992, the projects consist of twelve (12) separate buildings and are currently leased to 71 tenants.

The properties were acquired well below replacement cost and are projected to provide strong cash-on-cash yields and total returns over a 5 year holding period.

Columbus is the 15th largest city in the United States, with a predicted 2015 population of 1,876,062 people. Since 1980, Columbus has grown 18% faster than the national average and 6 times faster than the state of Ohio. Centrally located relative to most major markets in North America, Columbus has become the preferred choice of many regional and national headquarters. Recently, BMW Financial, Cardinal Health, Lane Bryant, OhioHealth, Nationwide Mutual Insurance, McGraw-Hill Companies and Safe Auto have had major office expansions in the area.

The Columbus Industrial Market, comprised of 239.5 million square feet, continues to boast low vacancy rates and high absorption rates. The market closed 2015 with a vacancy rate of 5.6%, down from its peak in 2010 of 10.3%. The vacancy rate fell to an all-time low in 3Q 2014 at 5.1% and has recently risen slightly due to the construction of several large distribution projects.
“We are excited to have entered the Columbus market with these four acquisitions” said Richard Kent, Avistone’s Managing Principal. “These properties align perfectly with Avistone’s acquisition goals of acquiring stabilized, multi-tenant business parks that produce healthy cash flow and a strong total return. We are actively seeking additional properties similar to the Columbus portfolio in order to provide the yield, return, and mitigated risk for our investors.”

Avistone is a premier commercial real estate investment firm specializing in the multi-tenant business park properties. The company is currently acquiring and managing quality, stabilized multi-tenant properties in major and secondary markets throughout the U.S. from $5 to $25 million. To learn more about investing with Avistone, please email [email protected].

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The Projections provided by the Sponsor, including target IRR, target cash-on-cash, and target equity multiple (referred to as "Targets"), are hypothetical and are not based on actual investment results. They are presented solely to provide insight into the Sponsor's investment objectives, outline anticipated risk and reward characteristics, and establish a benchmark for future evaluation of the Sponsor's performance. The Sponsor's Projections and Targets do not constitute predictions, projections, or guarantees of future performance. There is no assurance that the Sponsor will achieve these Projections or Targets. Forward-looking statements, including the Sponsor's Projections and Targets, inherently involve a variety of risks and uncertainties, and actual results may substantially and materially vary from those anticipated. Refer to the applicable Offering Documents for disclosures concerning forward-looking statements. Projections and Targets, including forward-looking statements, should not be the primary basis for an investment decision. Avistone and its affiliates do not provide any assurance regarding returns, or the accuracy or reasonableness of the Projections or Targets provided by the Sponsor. Past performance does not predict future results. The historical performance record of Avistone is not indicative of future outcomes. Third-party audits have not been conducted on the performance of Avistone's prior projects. Differing property offerings and commitment dates for individual property offerings resulted in varying returns for investors.

The metrics of the Full-Cycle Track Record on industrial properties are calculated based on weighted averages that treat investment dollars equally and are computed by aggregating the outcomes of all Avistone full-cycle industrial property investments, with weights corresponding to the respective capitalization amounts for each Full Cycle Investment. This real estate investment is speculative and involves substantial risk. There is a potential for a partial or complete loss of principal investment and should only be undertaken if you are prepared to bear the consequences of such a loss. Thoroughly review all of the Sponsor's Offering Documents, including any "Risk Factors" therein. For additional information concerning risks and disclosures, please visit https://www.avistone.com. None of the content in this communication should be considered investment advice, whether regarding a specific security or an overall investment strategy. Reproduction or distribution of this message to any individual or entity outside the recipient's organization is prohibited without the express consent of Avistone.