EXECUTIVE SUMMARY
• Astra investors will have the opportunity to invest in a well located stabilized asset with significant upside and exceptional risk adjusted returns.
• Sunrise JVRE Partners LLC thru Sunrise Winter Haven Industrial, LLC (“Sunrise”) will be the primary investor, investing between $16 million and $19 million in the acquisition and repositioning of Central Florida Business Park.
• The industrial business park is located at 4860–5400 Becker Highway in Winterhaven, Florida. The 100% leased park is comprised of seven buildings totaling 740,000 ft.², and 17 acres of industrial outdoor storage space (IOS).
• The executed Letter of Intent (LOI) provides for a purchase price of $50.75 million. The all-in cost of the acquisition is projected to be $53.4 million based upon that purchase price.
• We have received a commitment from a relationship Bank that provides for a 70% LTV and a fixed rate of approximately 6% over the Term.
• Sunrise and 1788 Holdings (our operating sponsor) will both be investors in the acquisition, thus aligning interests with investors.
INVESTMENT HIGHLIGHTS
• OFF-MARKET TRANSACTION: As an “off-market” transaction, we have negotiated directly with the seller. Therefore, there was no public listing, advertising or bidding by multiple buyers reducing competition for better pricing.
• COMPELLING LOCATION: Winterhaven resides equally between Florida’s two major industrial markets, Orlando and Tampa which average 93% occupancy.
• The business park’s central location provides distribution and logistics businesses with a regional hub to efficiently serve clients located in both markets from one location. Moreover, with these two metropolitan areas converging, the investment’s Winter Haven location will only continue to improve, which we expect will be accretive to the investment.
• BELOW MARKET “IN-PLACE” RENTS: The park is 100% leased with current in-place rents averaging $3.71 per square foot. These rents are substantially below market rents which average $10.04 per square foot in comparable properties located in the East Hillsboro County submarket, the closest submarket to Winterhaven. This provides the opportunity to substantially increase the property’s income.
• INDUSTRIAL OUTDOOR STORAGE SPACE (IOS) POTENTIAL: It is customary in the central Florida industrial markets to charge for outdoor storage space. The current in-place leases provide the existing tenants utilization of the (IOS) at no charge. This provides the opportunity to substantially increase the property’s income.
• NET OPERATING INCOME (NOI) UPSIDE: Upon upon achieving the business plan, we expect to increase net operating income (NOI) from $3.68 million to $5.38 million, a 46% increase over the holding period.
PROPERTY & LOCATION HIGHLIGHTS
• The Business Park is currently fully leased to four high-quality tenants, two of which have leases expiring in 2029 and two expiring 10 to 15 years from now.
• It includes 17 acres of IOS land, 14 acres of which the seller leased to the four tenants at the property at no cost to them.
• The business park is located adjacent to a rail line with an active spur providing an invaluable method to receive and distribute products and materials. This unique and highly valued feature is attractive to potential new tenants as well as the current tenants who are already relying on this attribute making their lease renewal even more likely.
• The Winter Haven Industrial Market is adjacent to the Tampa market’s East Hillsborough County a small submarket. This submarket extends from the Tampa CBD East submarket and is the closest submarket to Winter Haven. Its market size is 85.2 million sf and it is currently 94% occupied. The submarkets average building rental rates are $10.04 psf and its industrial outdoor storage (“IOS”) rental rates average $5,450/acre/month.
• The Tampa Industrial Market totals 165.1 million sf and it averages 94% occupancy. Average asking rates have ticked up, reaching $10.48 psf, a 1.5% year over year increase. The market is considered stable, although there is a slight increase in vacancy rates due to new supply outpacing demand.
• The demand and absorption continues to be strong, supported by growth in manufacturing and logistics industries.
• Demand for IOS remains strong with rates averaging between $5,000 and $7,000/acre/month. IOS is customarily utilized for storing goods, equipment, or vehicles outdoors, often with no building structures.
• The Orlando Industrial Market totals approximately 151.3 million sf and averages 91% occupancy. Average asking rates have increased to $8.92 psf, a 1.5% increase year over year. This market is also considered stable with strong demand based on industrial and logistics businesses.
• Similar to the Tampa and Winter Haven markets, demand for IOS remains consistent with rental rates, averaging $5,000 to $7,000/acre/month.
BUSINESS PLAN
— Renew or release the buildings occupied by two tenants totaling 483,000 square feet of the total 740,000 square feet (65% of the gross leasable area) at substantially higher rental rates. The current in-place rents for these buildings average $3.71 psf and are well below market rents which average $10.04 psf in comparable properties located in the adjacent East Hillsborough County Submarket.
— Caribbean Distillers lease (300,000 sf) expires on January 31, 2029. They are required to provide a renewal notice no later than July 31, 2028 (six months prior to the lease expiration). We will approach Caribbean in early 2028 to begin renewal discussions, making every effort to renew at market rates. Should we learn they are not renewable, we will begin marketing efforts with full expectations to have their space leased by the end of their term.
— CertainTeed lease (183,000 sf) expires on December 31, 2029. They are required to provide a renewal notice no later than March 31, 2029 (nine months in advance of their lease expiration). We will approach CertainTeed by the fourth quarter of 2028 to begin renewal discussions, making every effort to renew at market rates. Should we learn they are not renewable, we will begin marketing efforts with full expectations to have their space leased by the end of their term.
— Both Tenants Occupy buildings that are highly marketable and easily divisible for smaller spaces if need be. Quality smaller buildings are customarily leased at premiums in the market.
IOS
— Lease approximately 11.4 acres (68% of the total IOS acreage) to renewing or new tenants higher market rates upon the expiration of the two noted leases above. We will lease 6.7 acres of available IOS space early in the holding period, and another 4.7 acres of IOS space when the leases expire in 2029.
— This provides the opportunity to substantially increase the rental income.
CAPITAL IMPROVEMENTS
— We have budgeted approximately $470,000 in capital expenditures during the holding period to improve property aesthetics and address any deferred maintenance that may arise.
— We expect to determine the highest and best use for the capital expenditures within the first six months of ownership and complete the improvements within 4 months after that determination.
— The completion of these improvements will make a positive impact for the existing tenants thereby creating goodwill and improving the probability of renewing the existing tenants.
NET OPERATING INCOME
— Upon renewing and/or releasing the expiring 483,000 sf in 2029, and leasing the noted IOS acreage, the Net Operating Income (NOI) is expected to increase from $3.68 million to $5.38 million by the end of our anticipated holding period, a 46% increase in net income.
EXIT SRATEGY
— The property will be well positioned for sale in 2029.
— Upon execution of the business plan, approximately two-thirds of the leasable building area and nearly 70% of the IOS space will have been renewed or released at substantially higher market rents.
— This leaves the potential buyer with approximately 256,000 sf of leasable area and 5.6 acres of IOS land to increase rental income during their ownership period. We have found that assets with strong cash flow and meaningful embedded future upside potential in their rent rolls attract a broader pool of qualified buyers. This in turn creates a more intense bidding environment and better sale price execution for the seller.
—Prior to 2029, we we will interview investment sales brokers. We will retain the most experienced and capable brokerage firm to broadly market the property to a set of potential investors.
INVESTMENT MANAGER
ORIGIN: The Investment Manager is Sunrise JVRE Partners LLC, a Dallas based private real estate investment company established in 2025 to source diversified direct commercial real estate investments for Astra Wealth Management Group (Astra) investors.
EXPERIENCE: Sunrise principals, Bret Bunnett and Ross Helbing, have complementary commercial real estate backgrounds with over 70 years of combined experience underwriting, developing, investing, appraising, operating, and leasing most asset classes. Both have direct investment experience in over 100 real estate projects with total capitalization exceeding $750 million.
ADVANTAGES: Bret and Ross bring proven professional experience with practical knowledge and long-standing relationships in the real estate community to this new endeavor with Astra.
— Sunrise’s non-fund structure ensures a patient and disciplined approach to investing.
— Sunrise’s non-fund structure ensures a patient and disciplined approach to investing. They invest in every project they recommend to Astra thereby aligning interests with investors and sponsors.
— Sunrise prioritizes “ Off Market” opportunities with proven and known developers and operators. They focus on primary and secondary markets in Texas, and other states, where we have experience and familiarity.
PROJECT SPONSOR
ORIGIN: 1788 holdings LLC was formed in 2010 by former Goldman Goldman Sachs, Larry Goodwin. Located in Bethesda, Maryland,1788 holdings is a boutique commercial real estate company with a proven track record investing and developing commercial real estate projects in the mid Atlantic in Florida markets.
EXPERIENCE: 1788 has deep experience forged from decades of successful property acquisition, development, and asset management. They have acquired and/or developed projects valued over$1 billion. They have a unique ability to identify opportunities to create value in ways that others do not consider possible.
ADVANTAGES: The 1788 team of real estate professionals has a successful track record in sourcing and investing in real estate assets where the seller has under-leased, under-managed or under-invested its property. The team has extensive experience creating and executing targeted strategies for the properties it acquires in order to maximize the investment returns for their partners during the investment hold.
— Their team takes a holistic approach to asset management by identifying ways to improve an asset’s competitive position. They have deep relationships with stakeholders in the real estate community and they are often able to reduce an assets expenses without sacrificing service or quality.
— They have proven expertise in monitoring capital markets through acquisition, potential refinancing, and disposal of the assets.