Midtown Capital Partners has locked in $62.92 million in acquisition financing from Knighthead Funding to support its $86 million purchase of a 13-property industrial portfolio in Doral, Florida. The deal underscores continued investor appetite for small-bay industrial real estate in Miami's western suburbs, even as capital markets tighten elsewhere.
The portfolio totals 290,000 square feet across 13.33 acres of urban-infill land. Midtown structured the transaction as an off-market deal, meaning the properties never hit the public market. The financing covers roughly 73 percent of the purchase price, leaving Midtown to contribute equity of approximately $23 million to close the acquisition.
Knighthead Funding, a non-bank lender focused on commercial real estate, stepped in as the primary debt provider. Non-bank lenders have gained traction in Florida industrial deals as traditional banks pull back from construction and acquisition lending. Knighthead's willingness to fund this deal signals confidence in Doral's small-bay industrial market, where e-commerce distribution, last-mile logistics, and light manufacturing tenants command steady rent growth.
Doral has become a magnet for industrial investors over the past three years. The area sits roughly 15 miles west of downtown Miami, offering lower land costs than beachside submarkets while maintaining strong logistics connectivity to PortMiami and Miami International Airport. Small-bay properties, typically ranging from 5,000 to 25,000 square feet per unit, attract a diverse tenant base. Unlike large-format warehouses that depend on single anchors, small-bay portfolios distribute revenue across many tenants, reducing vacancy risk.
Midtown Capital Partners built its reputation acquiring and repositioning industrial assets across Southeast Florida. The firm typically holds properties for five to seven years, then either refinances or sells into the strong institutional buyer base that dominates Miami industrial today.
For investors tracking Doral's industrial market, this deal confirms that property values remain sticky despite higher interest rates. The $86 million purchase price implies roughly $297 per square foot, a premium for an off-market acquisition but realistic for a fully leased or near-fully-leased portfolio in the submarket. Retail investors seeking industrial exposure in South Florida face stiffer competition from institutional capital. Midtown's off-market approach reflects the challenge: quality assets rarely reach the open market anymore.
The financing terms remain undisclosed. Current rates for industrial acquisition loans in Florida range from 7.5 to 8.5 percent, depending on loan-to-value ratios, debt service coverage ratios, and lender appetite. Knighthead's participation suggests the underlying portfolio generates strong cash flow, likely with occupancy above 90 percent and in-place rents aligned with current market rates.
Tenants and landlords benefit from this deal's ripple effects. New ownership often brings capital improvements, professional property management, and refinanced debt that stabilizes rents. Small-bay tenants in Doral, many of them mid-sized logistics and manufacturing operations, gain access to better-maintained facilities and potentially more flexible lease terms as operators scale.
For sellers, the off-market channel delivered premium pricing without public marketing costs. For Midtown, the portfolio adds to its holdings in a submarket where industrial net leases remain durable and rent growth outpaces inflation.