D
enholtz, a developer headquartered in Red Bank, New Jersey, has chosen Tampa as the launchpad for its inaugural Delaware Statutory Trust (DST), underscoring the city’s robust industrial real‑estate prospects. The firm recapitalized its Sweetwater Business Center by placing the nine‑building complex—225,789 sq ft along W. Waters Ave., roughly two miles north of Tampa International Airport and near the Veterans Expressway—into the newly formed DX SB Industrial I DST. The DST structure enables investors to acquire fractional ownership through tax‑deferred 1031 exchanges.
Denholtz purchased Sweetwater in 2020 for $26.54 million when the property was about 90 % leased, financing the deal with an $18.6 million loan from Citizens Bank. The recapitalization secured a fresh $24 million mortgage from Bank of Montreal, valuing the asset at $42.54 million. The loan carries a 10‑year, interest‑only term with a 6.2 % coupon and was included in a recent CMBS conduit transaction.
Today the center is 87.35 % occupied. Six of the nine buildings are fully leased, while the remaining three range from 28 % to 90 % occupancy. Key tenants include The Home Depot, BayCare Health System, and Unified Women’s Healthcare. Leases average 3.69 years remaining and yield $18.29 per square foot in annual rent. Over the past 12 months, the property generated $2.52 million in net operating income, translating to a cap rate of roughly 5.92 %. Denholtz plans to boost NOI by improving occupancy, raising rents where feasible, and executing targeted capital improvements, with a projected holding period of up to ten years.
A Delaware Statutory Trust is a legal vehicle that lets multiple investors pool capital to acquire fractional stakes in large, professionally managed real‑estate assets. DSTs are commonly used in 1031 exchanges, allowing investors to defer capital‑gain taxes by reinvesting proceeds from a sale into a like‑kind property. Investors become beneficial owners of the trust rather than direct property owners, and the DST’s professional management handles leasing, maintenance, and day‑to‑day operations, offering passive income and tax deferral without landlord responsibilities.
Historically, Denholtz sourced capital mainly from institutional investors. The Sweetwater DST, offered through Orchard Securities of Pleasant Grove, Utah, attracted $18.54 million in equity from accredited individuals, with a minimum investment of $100 k. To support the offering, Denholtz launched Denholtz Wealth Exchange and appointed Jennifer McCool as executive vice president and head of capital markets. McCool, formerly with Kushner Cos. where she led capital‑raising for its investment‑management platform, brings additional expertise to the firm, which currently manages roughly $2 billion in assets nationwide.
The transaction highlights Tampa’s continued appeal to operators seeking long‑term industrial investments. Even amid selective capital markets, the city’s proximity to major transportation corridors, steady population growth, and strong tenant demand make it an attractive venue for deploying capital and testing new investment structures. Deals like Sweetwater reinforce the broader trend of national firms viewing Tampa Bay as a stable, scalable market for industrial real‑estate investment.
