A New Jersey-based real estate firm has selected Tampa as the launch market for its first Delaware Statutory Trust, signaling continued confidence in the region’s industrial real estate fundamentals.
Denholtz, a Red Bank, New Jersey–based 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.
The structure allows investors to participate in the asset through tax-deferred exchanges.
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 is roughly 12 miles south.
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.
A recapitalization built on Tampa fundamentals
As part of the recapitalization, Denholtz secured a new $24M mortgage from Bank of Montreal, placing a $42.54M valuation on the property.
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.
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.
Major tenants include The Home Depot, BayCare Health System and Unified Women’s Healthcare.
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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.
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%.
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.
The firm expects a hold period of up to 10 years.
What is a Delaware Statutory Trust?
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.
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.
Investors become beneficial owners of the trust, rather than direct owners of the property.
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Because DSTs are professionally managed, investors do not take on landlord responsibilities such as leasing, maintenance or day-to-day operations.
The structure is designed to provide passive income potential and tax deferral while offering access to institutional-scale properties.
DSTs have gained traction among investors seeking hands-off exposure to commercial real estate, particularly in high-growth markets.
Expanding access to individual investors
Historically, Denholtz raised capital primarily from institutional investors. In recent years, the firm has expanded its focus to accredited individual investors.
The Sweetwater DST was offered through Orchard Securities of Pleasant Grove, Utah, and raised $18.54M in equity, subject to a $100K minimum investment.
To support the offering, Denholtz launched Denholtz Wealth Exchange and appointed Jennifer McCool as executive vice president and head of capital markets.
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McCool previously worked at Kushner Cos., where she focused on capital raising for its investment management platform.
Denholtz currently manages approximately $2B in assets nationwide.
Why it matters for Tampa Bay
The transaction highlights Tampa’s continued appeal to real estate operators pursuing long-term investment strategies.
Even as capital markets remain selective, Tampa’s proximity to transportation infrastructure, steady population growth and strong tenant demand continue to attract investment in industrial assets.
For Tampa Bay, 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.
