Investors Checking Out Cincinnati Industrials

The metro area has a bright future as a distribution hub.

The vacancy rate for properties in the Cincinnati area has sunk to historic lows.

CINCINNATI—This metro area has watched its industrial market really take off in the past few years, and an increasing number of investors want a piece. Wilson Investment Properties, a Silicon Valley-based real estate investment firm, acquired an industrial portfolio of five properties in Florence, KY, spanning a total of 100,656 square feet.

This metro area has a bright future as a distribution hub. Even though the region is land-constrained due to some topographical issues, several major projects are underway. Amazon has decided, for example, to create a $1.4 billion hub at the Cincinnati/Northern KY airport, bringing 2,700 new jobs to the area as part of a larger move to lessen its dependence on UPS and FedEx.

Wilson purchased this development through a syndication of individual investors.

“These offerings allow our investors, many of whom are in the technology field, to diversify their investments outside of stocks and Wall Street,” says Tom K. Wilson, principal of Saratoga, CA-based Wilson Investment Properties. “Many of our clients love that they can invest in an institutional grade product for as little as $50,000 by utilizing the expertise of an experienced syndicator.”

Located on the 7600 and 7700 block of Foundation Dr., plus one building on the adjacent Powerline Dr., the purchased collection is just eight miles from downtown Cincinnati and three miles from the airport. It is 100% occupied and has high quality brick and steel construction. It was acquired at a 9.1% cap rate in a 7.5% median cap rate market.

The company has a few final shares available at $50,000 each for accredited investors.